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this post was submitted on 12 Oct 2024
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People, especially people in the U.S., have this strange idea that a government should be run like a business or a household, with no debts. Except those do have debts.
Similar with our budget deficits. Both Republicans and Democrats constantly talk about needing a balanced budget "just like you do at home." But who has a balanced budget anymore? Almost everyone in the U.S. who isn't very rich or very poor is in debt.
A more reasonable argument is we’re in too much debt, and it will eventually come due, regardless of current fashion.
To go with your analogy of household debt ….. there used to be a rule of thumb to keep your mortgage payments under 28% of income, and few other debts , until it was relaxed. Now you have people with debt payments exceeding 40%, even 50% of their income, making it difficult to pay for everyday needs. They’re”house poor”. At what point do we consider a country “house poor”
The U.S. was debt-free for one year. In 1835. It was a disaster. Unsurprisingly, it was done through the tyrannical rule of Andrew Jackson.
https://www.npr.org/sections/money/2011/04/15/135423586/when-the-u-s-paid-off-the-entire-national-debt-and-why-it-didnt-last