1. Debt enriches the private sector.
When the government issues debt, it spends the same amount of money as the amount it borrows. Money flows from the private sector through the government, and back into the private sector again. No money is lost or made in this process. The only net result is the creation of new treasury bonds, which enrich the private sector.
2. The debt need not be paid back.
So long as people want to hold government bonds, and the government can afford to pay the interest, there is no need for the government to pay back money it's borrowed in the past.
3. Paying interest does not make the country poorer.
When the interest is paid to Americans, there is no net result. When it's paid to foreigners, they can save the dollars or spend them on American goods and services. Either way it's good for us.
4. Debt is the basis of our financial system.
Dollars are backed by US debt. If the debt were paid off, it would result in the collapse of our economy.
5. We can't default on our debt, unless it's voluntary.
Our debt is denominated in dollars. We can create as many as we want. Therefore we can't run out of dollars to pay our debt.
6. We are not "borrowing from our grandchildren."
Should our grandchildren choose to pay down our debt (and there's no reason why they should), the payments will go to our grandchildren, not to us. (We'll be dead by then.)
When the government issues debt, it spends the same amount of money as the amount it borrows. Money flows from the private sector through the government, and back into the private sector again. No money is lost or made in this process. The only net result is the creation of new treasury bonds, which enrich the private sector.
2. The debt need not be paid back.
So long as people want to hold government bonds, and the government can afford to pay the interest, there is no need for the government to pay back money it's borrowed in the past.
3. Paying interest does not make the country poorer.
When the interest is paid to Americans, there is no net result. When it's paid to foreigners, they can save the dollars or spend them on American goods and services. Either way it's good for us.
4. Debt is the basis of our financial system.
Dollars are backed by US debt. If the debt were paid off, it would result in the collapse of our economy.
5. We can't default on our debt, unless it's voluntary.
Our debt is denominated in dollars. We can create as many as we want. Therefore we can't run out of dollars to pay our debt.
6. We are not "borrowing from our grandchildren."
Should our grandchildren choose to pay down our debt (and there's no reason why they should), the payments will go to our grandchildren, not to us. (We'll be dead by then.)