National Deficits and Debt God Or Bad?
From Hamilton’s Blessing by John Steel Gordan
Answer:
Bad:
Deficits cost the interest cost. I think we are paying something like 300 billion in interest, which I think was the military budget before Bush.
Deficits are bad today because we are borrowing from foreign countries which may have security issues in the future.
Running continual deficits as far as the eye can see while at the same private saving is non-existent threatens the stability of our currency and is unattainable in the long run
Deficits are bad politically because it appears no one is paying for anything.
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A temporary deficit that borrowed among domestic or friendly foreign countries would not be a big deal except fo the interest cost issue.
Deficits are good if we have to spend money today for an emergency that will help our country grow and be prosperous. Then it might make sense not tax people. Or, if there was a war or natural calamity of some sort maybe.
Horrendous
Theres alot more money out there now, and alot more people. In 1912 there was 95 million now where closer to 300 million. Modern financial systems allow debt to be anaged much more effectivly, and the economy is on a signifigantly more global scale. Our current national deficit is not good but when compared to our gdp it is also not the highest its ever been. I believe that occured sometime during world war 2. A certain amount of deficit is healthy but it will have to be paid off eventually.
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