October Business Conditions Monthly
However, neither household nor business debt has grown as much as debt issued by government. Debt growth for state and local government has ballooned 56.1 percent since the end of 2007, while federal government debt is up a whopping 123.1 percent (Chart 1). Given the severity of the recession, some deficit spending is understandable, as a spur to economic growth. However, the torrid pace of debt growth by the federal government may become a significant risk to the economy in the not-too-distant future.
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AIER Staff
Founded in 1933, The American Institute for Economic Research (AIER) educates people on the value of personal freedom, free enterprise, property rights, limited government, and sound money. AIER’s ongoing scientific research demonstrates the importance of these principles in advancing peace, prosperity, and human progress.
