‘Japanification’ and the Negative Growth From Debt

‘Japanification’ and the Negative Growth From Debt
Japanese 1000 yen banknotes and US $20 bills. Florence Lo/Illustration/Reuters
Lance Roberts
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Commentary

With politicians squabbling over lifting the debt limit, few are paying attention to the ongoing “Japanification” of the U.S. economy. What do I mean by “Japanification”? With a zero to negative debt multiplier on economic growth, the ongoing spending spree by the federal government continues to push the United States toward the same slow-growth economy as in Japan.

Lance Roberts
Lance Roberts
Author
Lance Roberts is the chief investment strategist for RIA Advisors and lead editor of the Real Investment Report, a weekly subscriber-based newsletter that covers economic, political, and market topics as they relate to your money and life. He also hosts The Real Investment Show podcast, and his opinions are frequently sought after by major media sources. His insights and commentary on trends affecting the financial markets earned him a spot in the 2020 Refinitiv Global Social Media 100 influencers list.
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