My thoughts on the question of U.S. public debt being a driver of national economic growth are philosophical rather than economic-technical. A trillion dollar infrastructure program here and there added to debt and economic growth together. Highway bills and defense spending that together add up to trillions drive growth- perhaps in the wrong direction partly. Meanwhile jobs were outsourced to China negating national economic growth. Taxes were cut on the rich to let them have more money to invest overseas. Some unskilled jobs were created domestically- or semi-skilled as a national sop an alibi for the tax cuts.
Student loans added to national debt yet added more college graduates with vast debt so they could pay interest to the big banks and borrow money for first homes helping the most rich to have more money to invest in China and stimulate the economy of China. That enables increased Chinese defense spending enabling increased U.S. defense spending and economic expansion in U.S. weapons manufacturing states.
Lower national unemployment attracts millions of illegal aliens (maybe 2 million annually) to surge into low-paying U.S. helping keep wages down while enabling increased economic expansion of dirty industries ecologically speaking. That is all good for corporate profits and income for the most rich. Externalities included environmental costs and mass extinction of wildlife, decayed habitat and deferred restoration and clean-up costs of trillions and trillions.
So I guess U.S. public debt helps and harms economic development simultaneously (sometimes inflation of costs and deflation of wages need occur to assure increased income for the most rich).
Student loans added to national debt yet added more college graduates with vast debt so they could pay interest to the big banks and borrow money for first homes helping the most rich to have more money to invest in China and stimulate the economy of China. That enables increased Chinese defense spending enabling increased U.S. defense spending and economic expansion in U.S. weapons manufacturing states.
Lower national unemployment attracts millions of illegal aliens (maybe 2 million annually) to surge into low-paying U.S. helping keep wages down while enabling increased economic expansion of dirty industries ecologically speaking. That is all good for corporate profits and income for the most rich. Externalities included environmental costs and mass extinction of wildlife, decayed habitat and deferred restoration and clean-up costs of trillions and trillions.
So I guess U.S. public debt helps and harms economic development simultaneously (sometimes inflation of costs and deflation of wages need occur to assure increased income for the most rich).
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