US debt: This may be the maximum that's sustainable before interest payments trigger a crisis

US debt: This may be the maximum that's sustainable before interest payments trigger a crisis

Fortune business

Key Points:

  • But the Penn Wharton Budget Model may have an answer: more than 210% of GDP.
  • Above that “outer bound” threshold, there’s no feasible tax on labor income that can finance interest payments on U.S. debt

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