The blue line is the interest rate we pay on existing debt, interest expenses/debt. The red line is the current market rater. The green is real growth, nominal growth minus deflator. Note the slight decline in growth over the period, there is no indication of multipliers greater than one on government purchases.
We are currently paying 2.5% on past debt while market rate is about .6%, while we suffer a sever recession.
The difference in rates government pays on past debt, relative to current market rate, is made up with Fed taxes on the banking sector as no one seems willing to purchase less real growth with more government debt.
We have economists, mostly at Berkeley, that automatically conclude multipliers are high, with no real evidence but fake research. What they miss are the agents who are kicked off the banking roles because the Fed tax is unaffordable. Why the widespread fraud on this? Who caused this nonsense? Drum and Yglesias both suffer the misconception and both we educated by the multipliers always 'greater than one' crowd. That would be UC Berkeley deliberately committing fraud.
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