Concern About Deficits

Ben Ritz at Forbes breaks down the debate over spending and concern about deficits (Forbes)

“…When the cost of borrowing is equal to or below the rate of inflation, as it is today, there is no reason not to finance long-term investments with future revenues paid by those who will benefit. But borrowing at low or negative real interest rates does not make spending free; it only means that paying for it later is no more expensive than paying for it today. During economic expansions, programs that finance consumption by the current generation should be fully paid-for by the current generation…”