That illustrates nicely. You can find various analyses about ineffective investments, but debt in and of itself doesn't drag on the economy any more than it drags on individual wealth. If I borrow a million dollars and invest it in property that triples in value before I have to repay the loan that was an enormous boost to my personal wealth. If I borrow a million dollars and spend it on hookers and chips then I have a million dollar debt and nothing to show for it...now that would be a drag. So to say "too much debt" causes a stagnated economy you are assigning causality when none exists.