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How the federal debt hurts the economy
The federal debt is huge. REALLY huge. We borrow and borrow and borrow some more. It is generational theft. Not only are we are stealing from our children, but we are also hurting ourselves. Congressional Budget Office director Douglas Elmendorf explains to Congress:
But even before you hit that crisis point (when investors stop buy treasury securities), of course, what’s going wrong in a more subtle — what’s obvious, but still very damaging way, is that the more of those treasury securities are being held, the less that investors will be holding of shares: the ownership of physical plant and equipment; the sorts of things that make our economy more — workers more productive over time and raises incomes over time.
It is a hidden form of redistribution from capital that produces wealth to the government that doesn’t. We need to get back to producing wealth.
