[brownsfan]

Someone has to inform Greenspan about the fact that "deficits don't matter".

Really? Can you give me references? That's really a counter-inituitive concept. If government incurs a big debt, and then must service that debt, less is spent on programs, and more is spent on servicing the debt. So, in order to feed it's ever growing hunger, the government will raise taxes. At least that's my understanding.

[familyofman]

"Really? Can you give me references? "

read most of the economic related topics around here - you'll find them everywhere. It was proven during the Reagan years that "deficits don't matter". Every argument for making the recent tax cuts permanent will be rife with the statement/argument concerning deficits. Deficits kead to good times - don't worry about balancing the budget.

[Cold Heat]

Government, like a family, can incur a large amount of debt and service it without giving up the weekly movie.

There is a point that it can indeed be a problem.

We reached one of those times a few years ago when the debt load was higher than now but the interest rates on the debt were very high. The high interest debt had to be retired and new borrowing at much lower interest rates took it's place.

Kind of like refinancing the government.

That is where we are today, and that is why the debt is not a real problem now.

But it could get much worse in about ten years and needs to be controlled so that we have more room to adjust to future SS expenditures..