Quote:
Originally Posted by Pokesan
[You must be logged in to view images. Log in or Register.]
I'm quite aware of what interest is, please provide an actual explanation instead of jerking yourself off about how dumb I am - everyone already knows that.
|
Paying $200B a year in interest isn't enough of an explanation for why running neverending deficits is a bad plan? I don't understand what you're missing here.
Let's put it in personal finance terms. Would you go out and throw $100k worth of vacations on a credit card, and then just pay $20k in interest per year in perpetuity without ever paying off the debt? It's all about standard of living. Sure your standard of living was great during the $100k hookers and blow cruise through the Caribbean, but your standard of living is reduced until you pay off the debt.
Because of the profligate spending of previous generations, we're now having to waste $200B a year on interest rather than using it for useful things like roads, schools, and medical care. And this is during a time of historically low interest rates. The interest payments are only going to get more onerous as interest rates rise.
Edit: China