Debt Major Drag on Economy
Created on February 19, 2013
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.
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).