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Is the National Debt Good or Bad?
A deficit must be maintained to insure that the economy grows with its resources.
Is the U.S.'s current debt bad or good? The trick is finding out how large the deficit should be in order to allow for growth without waste. The U.S.'s deficit is bad at this point because the U.S. is close to its maximum production capabilities, and deficit money is being wasted. For example two of the largest portions of the budget: defense and social security. Defense spending produces little or nothing except in times of war. The way social security is managed creates a huge waste. As managed, social security is money spent to immobilize a large and fairly capable part of the work
force. It encourages elderly people not to work by
spending deficit money on them. Reducing productivity and increasing the debt at the same time. In its current state the U.S. should attempt to reduce its deficit but eliminating it is not necessary and could do more damage than good.
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