Part 1 of an interview with Lacy Hunt done well by Alex Daley. Video at the link.
Lacy: The main problem is that the country is excessively indebted. We have got too much debt – public and private – relative to GDP, and an increasing portion of this debt is unproductive or even counterproductive, which means that we are not going to be able to generate income in the future to service the debt.
It’s already affecting us quite dramatically. In the last fifteen years, debt-to-GDP ratio has risen from roughly 250-260% to a hundred points higher, 360 today, and our standard of living is no higher. By “standard of living” I mean the median household income. It’s really a tragic situation. We’ve taken on the debt, it’s bought some gains in GDP, but it has not improved the welfare of the majority of our people.