34sec snip

We Study Billionaires - The Investor’s Podcast Network cover image

TIP650: Stock Market Bubbles, AI, & Climate Change w/ Jeremy Grantham

We Study Billionaires - The Investor’s Podcast Network

NOTE

High Debt Does Not Equal Economic Growth

Tripling the debt-to-GDP ratio of the world's largest economy has not resulted in economic stimulation; instead, it has led to a significant slowdown in GDP growth. Following a period of increased debt, the average growth rate post-1989 dropped to two-thirds of the rate observed from 1945 to 1989. This suggests that higher levels of debt may not effectively promote economic growth, highlighting the complexity of the relationship between debt and economic performance.

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