Harm of a large national debt?

Question

can anybody tell me the harm of a large national debt like what the US is experiencing right now please? the government doesn't really seem concerned about the huge debt, and keeps enlarging it. would we ever have to pay off the debt completely at some point in the future? thanks.

Answer 1

This is a great question and to be honest there are so many reasons having a unstable national debt is harmful there is not enough room here to elaborate.

Just think for a moment what the national debt implies.  The government represents the people (literally) we are the government.  And the government owes money.  Money to who, well private banks and institutions mostly (notably international banks) and foreign governments.  So 'we the people' owe this amount to private banks and institutions, not to mention foreign governments (most Americans would be shocked that they owe a second mortgage for the nations debt considering the foreclosure rate).

Also consider that the national debt increases at an exponential rate (meaning more resources needed every year to service this debt).  Now consider the clincher, how the government even goes into debt in the first place.  Running year over year deficits (spending more than they tax).

Considering that the national debt over the Bush term has increased around $5 trillion (almost double) to put us at around $10 trillion by the end of his term (thats what, just a thousand billion dollars).  A truly inconceivable number, I can hardly think in billions let alone trillions, oh wait tens of trillions. Sorry for being so long winded but great question.