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Debt Major Drag on Economy

Created on February 19, 2013

Debt Major Drag on Economy

Without Public Debt Overhang

With Public Debt Overhang

GDP IN TRILLIONS OF CURRENT U.S. DOLLARS

U.S. economic growth could shrink by one-fourth if public debt reaches 90 percent of GDP.

CHART 3

Source: Heritage Foundation calculations based on data from the Congressional Budget Office, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022, August 2012, Table 1–1, http://cbo.gov/publication/43543 (accessed August 23, 2012).

B 2768

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