Federal Debt Harmful

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This paper sought to answer the question whether Federal Debt is Harmful to the United States Economy. The paper examines and assesses the possible effect of high levels of debt on the United States in the context of the recent financial crisis. The analyses provides significant insights on understanding the adverse impact of national debt dynamics on medium and long term economic growth, with a special focus on the United States. This paper adopted a general theoretical model enhanced with a debt variable to address the possible issues of bias. A fixed effect panel regression was used to control factors of time and country-specific elements. Concerns of possible effect of low economic growth on increased levels of debt were addressed using
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