According to the Fed, non-financial business debt more than doubled in the 1980s, grew only slightly slower in the 1990s, by 75%, and about doubled again during the first decade of this century. As it is, non-financial business borrowing has actually begun to slow, growing during the last three years at a 6.1% annual rate, considerably slower than the 7.0% annual rate needed to sustain the earlier pace. So even as bond issues expanded at about 6.1% annual rate during the past three years, the overall liabilities of non-financial business grew at only a 2.1% annual rate. Accordingly, non-financial business’ net worth, the Fed statistics show, increased at a 3.3% annual rate. According to the Fed, trade receivables during the last three years expanded at more than a 5.0% annual rate.

Source: Forbes December 21, 2018 15:49 UTC