It is ALWAYS crucially important to know the purpose of the debt. Borrowing to pay operating costs is a recipe for disaster. See Puerto Rico, Greece, Italy, Spain, Portugal, and a host of smaller countries for examples of how devastating it can be.
But borrowing for investment is a necessity. Infrastructure is worth the expense. Mundane stuff like new water supply and wastewater systems, an enhanced power grid, and environmental restoration where it’s feasible. Railroads. High-speed lines that will whisk people from one major city to another at hundreds of miles per hour. Green infrastructure that will be needed to support the inexorable shift to renewable energy sources. These are the things it is worth borrowing to pay for, because they will return many times their cost to build. There will be efficiencies discovered, other cost savings in the future, new revenue sources identified for government operations, new industries and the attendant jobs created, the new experience, knowledge and expertise gained that are vital to these industries. With the ultimate goal of ensuring that the USA remains the global economic powerhouse that it is today, with leadership in many industries. If we allow the experience, knowledge, & expertise to depart, then we will have only ourselves to blame for our downfall. You cannot, must not, stagnate by clinging to old methods and old technologies. Instead, you must always be the leader in the creation and development of the next big thing.
It is ALWAYS crucially important to know the purpose of the debt. Borrowing to pay operating costs is a recipe for disaster. See Puerto Rico, Greece, Italy, Spain, Portugal, and a host of smaller countries for examples of how devastating it can be.
But borrowing for investment is a necessity. Infrastructure is worth the expense. Mundane stuff like new water supply and wastewater systems, an enhanced power grid, and environmental restoration where it’s feasible. Railroads. High-speed lines that will whisk people from one major city to another at hundreds of miles per hour. Green infrastructure that will be needed to support the inexorable shift to renewable energy sources. These are the things it is worth borrowing to pay for, because they will return many times their cost to build. There will be efficiencies discovered, other cost savings in the future, new revenue sources identified for government operations, new industries and the attendant jobs created, the new experience, knowledge and expertise gained that are vital to these industries. With the ultimate goal of ensuring that the USA remains the global economic powerhouse that it is today, with leadership in many industries. If we allow the experience, knowledge, & expertise to depart, then we will have only ourselves to blame for our downfall. You cannot, must not, stagnate by clinging to old methods and old technologies. Instead, you must always be the leader in the creation and development of the next big thing.