Is the deficit and the national debt a burden on us? reasons?

Question

Is the deficit and the national debt a burden on us? reasons?

Answer 1

I agree with the guy above me (poster #2) plus since we never plan on paying off our debt to China anyways, its essentially free money. Like borrowing from a bookie then never paying him back.

Answer 2

That depends. Is the mortgage on your house a burden? Or does it enable you to use leverage to buy an appreciable asset? The national debt is only a burden to the extent that you don't grow national income at a greater percentage rate than what your borrowing rate is.

Right now the federal government can borrow at roughly 4% money that it would otherwise have to secure by taxation. If that money that taxpayers retain grows national income at, say, 6%, then you are actually better off borrowing.

Answer 3

Yes, paying it back plus the interest means there is no money for important stuff. It can also drive up the cost of borrowing for everyone by limiting the supply of money.