Why will high Debt-to-GDP or government spending send the economy into a recession?
Do you agree that it is a problem at some point? If so then why not at current levels?
Do you agree that it is a problem at some point? If so then why not at current levels?
For example, I personally could have $100 Trillion in debt but with an infinitesimally small interest rate and an infinitely long repayment period, I would not be concerned.
What matters is Debt-Payment-to-GDP ratio. There is certainly some level of that ratio at which I would be concerned.
I would actually argue the opposite: If debt payments suddenly increased, this would infuse cash into the economy which would likely boost GDP.