The National Debt Awareness Center often receives opposing views about whether this large debt is bad, or about its impact on our economy. The following opposing view is submitted by Mr. Rodger Mitchel. A link to his web site is posted below. If you have a contribution to make about the National Debt, email it to the Director.

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According to Mr. Mitchel, the facts are:

1) Annual percentage increases in Total (federal and private) Debt parallel annual percentage increases in GDP. In short, the more debt, the healthier the economy. The reason: Debt = money. Not many people understand this.
2) The government has the unlimited ability to produce money. Therefore, the government does not need tax money. Taxes destroy money, which means all taxes have a negative affect on all of us.
3) Contrary to common knowledge, "turning on the money printing presses" never has caused inflation. But it always has caused economic growth.
4) FICA could be eliminated and Social Security benefits could double, and still Social Security would not go bankrupt. Same for Medicare. They are federal agencies, and no federal agency can go bankrupt. (But imagine the tremendous boost our economy would receive by eliminating FICA ).
5) High interest rates do not "cool" the economy, nor do low rates stimulate. To a small degree, the reverse is true, because high rates force the government to pump more money into the economy.
6) Federal debt is an economic asset. The economy is the creditor, and for a creditor, debt is an asset. The federal deficit is an economic surplus. This means the economy receives more money from the government than it sends to the government -- a surplus. So why do your readers prefer an economic deficit (federal surplus)?
7) A growing economy requires a growing supply of money. Economic growth is impossible without growth in Total Debt (money). So here's the question, I will bet not a single one of your readers will "remember" to answer: Where will the money come from to grow our economy?


Rodger Malcolm Mitchell
And for more detail on this viewpoint, visit http://www.rodgermitchell.com.

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NDAC Director's comment: OK, try doing this on your personal budget!