First, to help me get your attention I offer two graphs from the article.
don't seem to care about the impending disaster. However, just as a Republican might have won the 2008 Presidential election if they had listened to Rasmussen and positioned themselves on economic issues, so now, Republican candidates could start winning, and positioning by taking on the debt issue. More from Mr. Marron:
He goes on to point out seven key reasons why long term deficits and debt hurt the United States. Summarizing:
Before we can hope to make a dent in our deficits and debt, there must be broad agreement among the public and the governing class that we even need to. There are still some commentators on both the right and the left who continue to insist that deficits and debt do not matter much. It is important to understand why they are mistaken.
Running deficits can certainly be appropriate — and even beneficial — at times of particular stress, such as wars and recessions. But in the long run, persistent large deficits and growing debts undermine our nation's prosperity.
- Debt undermines growth by crowding out investment.
- Debt fuels inflation, a hidden tax and destroyer of wealth.
- Foreign holding of our debt gives them leverage to negotiate in other areas.
- Use of shorter and shorter term debt puts interest rate risk on the budget.
- Rising debt limits our ability to raise money to combat a new crisis or our ability to go to war (not always a bad thing I guess.)
- Due to the magic of compound interest, debts grow on their own. Especially when you are financing current operations out of debt.
- We're screwing our children and grandchildren. (Marron uses the PC "intergenerational fairness.")