The current gross national debt is just shy of $20T. So, that's about 6x the annual government revenue.
In theory, national debt is "good debt" like a home mortgage, and having a home mortgage worth about 6x your salary seems pretty healthy.
The current gross national debt is just shy of $20T. So, that's about 6x the annual government revenue.
In theory, national debt is "good debt" like a home mortgage, and having a home mortgage worth about 6x your salary seems pretty healthy.
I understand the position that govt taking debt out if the funds can increase economic growth->more tax revenue. However, this concept seems to break down when debt is carried over year to year and used to pay interest expense on other debts.
Presumably, the return you can generate from borrowed money diminishes as you borrow more money, so "good debt" is some amount of money that you have borrowed that allows you to be more productive and pays for its own interest, in a sense. But borrowing even more than that would start to become less useful, and drag down your overall return.
[0] https://www.bloomberg.com/markets/rates-bonds/government-bon...