LogFAQs > #911965281

darkknight109 posted...

Zeus posted...

Given that the way that the national debt has been handled, budget deficits are effectively meaningless right now because we have an obscene amount of credit available.

The more debt is piled on, the greater the amount of tax revenue that has to be diverted to interest payments to service that debt and the greater the impact will be.

That's not a dealbreaker, but running sky-high deficits now, during a period when the economy is roaring and sound economic policy would involve paying down the debt, is economic lunacy.

Plus, just imagine how bad it will get when the next recession hits. The massive deficits being run now is under the best case scenario of the economy.

Not to mention interest rates are still near historic lows, but are slowly climbing back into normalcy. In the future, it will get more and more expensive to borrow money to pay off the debt incurred from previously borrowing money.