It's astonishing that, in a nearly 3,000 word speech calling the United States a "horror show", the word debt is used not once.
We're actually running a secondary surplus right now, given that the rate of inflation is higher than the extremely low interest rates on our national debt.
I am always amused when folks take a simple statement ("It's astonishing that, in a nearly 3,000 word speech calling the United States a 'horror show', the word debt is used not once.") and read into it suggestions that are neither expressed nor implied.
> We're actually running a secondary surplus right now, given that the rate of inflation is higher than the extremely low interest rates on our national debt.
There are always justifications for reckless behavior ("Yes, I'm spending a lot of money, but I'm paying 0% interest for 18 months thanks to my new credit card's introductory offer!"), but given that interest rates can't get much lower, an exercise you might find valuable is to calculate the cost of servicing the national debt as interest rates rise. For reference, although the CBO isn't great at predicting the future, they expect the interest rate on the 10y to be at 5.2% in 2023 and that annual interest payments on the debt will be $823 billion.
I'd love to meet the "sensible people" who believe that debt, both personal and national, is not at all implicated in the economic divide between rich and poor that David Simon speaks of.
uh, okay.
it would be better if you simply just stated your case and/or evidence because that is what HN is for.
I think you have it backwards. The OP suggested that "sensible people" (all of them, apparently!) don't believe that debt ("in and of itself", whatever that means) is "a serious problem." That is an extraordinary claim, and extraordinary claims require extraordinary evidence.
But I'll indulge you:
1. Navy Admiral Mike Mullen, former Chairman of the Joint Chiefs of Staff, has stated "I've said many times that I believe the single, biggest threat to our national security is our debt, so I also believe we have every responsibility to help eliminate that threat."
2. David Walker, former Comptroller General and head of the GAO, has been sounding the alarm about the tens of trillions of dollars in debt and unfunded liabilities the United States has racked up for years. He has warned that unless something is done, the US will plunge into a "fiscal abyss."
3. Barack Obama, as a Senator, stated, "The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies... Increasing America's debt weakens us domestically and internationally. Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
Are Mullen, Walker and Obama not "serious people"?
It's a more nuanced view than the 'we're all going to die' and 'debt doesn't matter' viewpoints*. That said, there clearly are huge risks with having such unproductive debt.
Just don't expect things to ever change. There were debt jubilees in the bible.
It means that "debt is bad" is a ridiculous proposition. Again, debt cannot exist without an equal and off-setting asset, by definition. So, saying "there's too much debt!" is functionally equivalent to saying "there's too many assets!"
>Are Mullen, Walker and Obama not "serious people"?
Politicians, all of them. Don't really care what Mullen or Obama's opinions about debt are.
As far as Mr. Walker, it appears he's appealing to populism and Republican talking points. Because I'm sure he understands that talking about "unfunded liabilities" only looks at one side of the ledger, as a scare tactic. I mean, those liabilities aren't going into the fire, they're being received by real people, spent into the economy. Where is that counted?
Debt isn't the problem. If you however close yourself in your house for the fear of someone mentioning debt don't be surprised you lose your job and can't repay it.