Recently the world has become enamored with a new theory- Modern Monetary Theory (MMT)- that states we can deficit spend as a country without concern. The United States is adding to the national debt at a record pace… it is now up to $27 trillion, having added $5 trillion just this year! There were some obvious reasons this year, namely the Covid pandemic, but we have been over-spending otherwise for a long while now. So, perhaps now we can open our economy and get the economy back on track. We want to avoid mortgaging our future and our families future.
I remember serving as the Chicago Co-Chair of the National Non-Partisan Concord Coalition. Our role was to educate the public on the ills of public debts and try to convince our political leaders to stop adding to the national debt through deficit spending. Back then, in 1993, the National Debt stood at just over $5 trillion if you can imagine! So, 28 years later we are at $27 trillion and counting. Where does it end? When will people stop buying U.S. Treasuries and our national debt? Only time will tell.
Debts must be paid by someone, either the debtor who has to pay it off in full, or the lender who has to write it off, but make no mistake there will be an impact on people and on society. National debt has an impact, it is not like calorie free food!
Here is a very interesting commentary by University of Chicago Economist John Cochrane, the Grumpy Economist, about why deficits matter… let us know your thoughts~ Brian Kasal – The Leadership Matrix
Click here- Debt still matters
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