originally posted in:Liberty Hub
I don't think you realize how the deficit works. When a country is doing good, they are allowed to borrow more, just like your own personal credit cards. You earn more per month and pay your bills your credit limit goes up. The US borrowed money to grow infrastructure and embark down a road of advanced technologies which , in turn, creates more revenue for our country.
Enjoy the free lesson.
English
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[quote]I don't think you realize how the deficit works.[/quote] I think I do, and I don't recall even mentioning the deficit. I'm talking squarely about the debt. [quote]When a country is doing good, they are allowed to borrow more, just like your own personal credit cards. You earn more per month and pay your bills your credit limit goes up. The US borrowed money to grow infrastructure and embark down a road of advanced technologies which , in turn, creates more revenue for our country.[/quote] This is just Keynesian economics, which even Keynes himself admitted wasn't sustainable in the end. You can spend yourself into prosperity in the short term, but as your debt-to-GDP ratio starts to climb, you start looking like Greece. That said, the U.S. had its credit rating downgraded in 2011. (https://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating/2011/08/05/gIQAqKeIxI_story.html?utm_term=.8d3f562c99ab) Things haven't exactly been improving much, as far as the nation's finances go. I wouldn't hold your breath waiting for the rating to climb again.