The chart below should not be surprising to anyone who understands economics. But it needs a bit of explanation. It is not debt itself that produces low growth rates. It is what the debt is used to finance that creates low growth. You would not see this same relationship with regard to corporate debt. That's because private debt is usually incurred to finance economically productive projects. Public debt is usually used to finance economically UNproductive projects -- like transferring money to less productive people and "green" projects that have negative ROIs.
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