What is better for the growth of American economy: to have balanced budget or $400B deficit?

Question

What is better for the growth of American economy: to have balanced budget or $400B deficit?

Answer 1

It depends on whether you the government is getting a higher economic return than the people they tax. Historically that hasn't been the case. If you balance the budget by taxing people who can earn, say 6%, on their money, and the government can borrow at 4%, you are better off borrowing. Now if you balance the budget by reducing spending (pause for laughter), then you are better off balancing the budget.

Answer 2

A very  notable oil man once said;

"If you owe so much money to the bank that the bank can not afford to lose you as a customer, you own the bank"

We can print it faster than we spend it . . .  this is a good thing.