Growth in the U.S. Federal Debt
By allowing our government to borrow significant sums today, we are saying that the problems of today are more important than problems that might emerge in the future. In ten years, will the United States be able to face the threats imposed by a new world super-power if we are sitting on a federal debt equal to 100% of GDP? Even if you don’t buy that argument, by allowing our government to borrow, we are allowing our elected leaders to provide us with politically attractive tax cuts without taking responsibility for politically-distasteful spending cuts. Elected leaders basically saying that we can keep more of “our” money and also continue to enjoy all the services we have come to expect from our public sector. We just send the bill to our children.