|Graph #1: The Federal Component of TCMDO (Adjusted)|
|Graph #2: The Non-Federal Component of TCMDO (Adjusted)|
After 1982, the growth of Non-Federal debt increased.
|Graph #3: TCMDO (Adjusted)|
Couple days back I said more stimulus is not the answer. The next graph shows why.
The growth of Federal debt since 1981 was all stimulus. It was an attempt to improve economic performance. Economic performance was feeble because of the excessive cost created by private-sector debt, which had been accumulating since the end of the Second World War. But once the Federal debt started expanding, private-sector debt growth accelerated. So the cost of accumulated private debt increased even faster.
The only thing stimulated by government debt is the growth of private-sector debt.
|Graph #4: TCMDO and its Federal and Non-Federal Components (Adjusted)|
Once again, these graphs show inflation-adjusted debt numbers.