Question

The U.S. government’s debt is currently about $20 trillion, which is 105% of GDP. How much debt is too much debt for our country?

Answer 1

Two third of 20 trillion dolar debt is held by public and rest is governed by quasi government debt. However any economy which hasmore than 100 percent debt of its GDP is red flagged and needs to refinance its debt to bring down overall payouts. The debt however should be within 111% which is average debt to GDP ratio of OECD nations and hence this is maximum permissible limits by inflation indexing which js considerable and should not go beyond to mitugate risks like recession.