The above graphic, taken from an academic study of growth versus debt by two academic researchers shows how US debt has changed over the years vs GDP and how such a metric predicts the growth prospects for a country.
During the Reagan years (1980-1988), the country's growth rate was strong as debt vs GDP averaged under 50% even as the economy came out of the miserable Carter years (when the Misery Index was born).
Starting in the 1990's debt load has steadily increased. But the explosion in debt is clearly on Obama's watch and more frightening are the future projections. In 2010 and beyond, our debt will equal or exceed GDP which will likely put us in a slow growth mode. Which by the way, makes it hard to do something about the debt. It begins to look like a death spiral.
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