how necessary is it to pay off the national debt?

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  • Amy
    Lv 7
    4 weeks ago
    Favourite answer

    We're paying $340 billion per year in interest on the debt, and that's at historically low interest rates. That's $1000 per US citizen. Every year.

    It's not absolutely necessary to pay it off completely, but if we want to have any money left to spend on anything else, we need to stop increasing the debt.

    And when you're in that much debt, it makes it much harder to borrow even more money when an unexpected cost - such as a pandemic - occurs.

  • 1 month ago

    It MUST be repaid.

  • Erik
    Lv 7
    1 month ago

    Hopefully not at all, since it will obviously never happen.

  • Anonymous
    1 month ago

    It's not.

    Most economists believe having a national debt is appropriate.   

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  • User
    Lv 7
    1 month ago

    Obviously it's not necessary.

    One can imagine reasons that it would be beneficial to do so.

    - for example: a significant percent of federal revenue pays INTEREST on the national debt. If there were no national debt there would be no interest payment and that money could be used to pay for additional federal programs (or: reducing taxes)

    BUT

    apparently

    economists consider government overspending to be healthier

    - if it is not excessive, to the point where the country is in danger of going bankrupt

    because government overspending boosts the economy

    which in the long run is beneficial for the country.

    There are graphs comparing

    for example

    government spending compared to GDP

    and comparing nations that have gone bankrupt to the U.S.

    As long as the ratio of overspending to income is low enough

    government overspending is supposed to be beneficial for the economy.

    For a GOOD answer to your question

    you need to get into somewhat highbrow economics

    and that is definitely not my bailiwick.

  • martin
    Lv 7
    1 month ago

    It's not necessary because a lot of the debt reflects countries and investors who've bought US savings bonds, stocks, and shares in banks, all based on solidarity of the US promise to pay interest, dividends, gains, and profit sharing.  The debt reflects US's good credit.

  • Anonymous
    1 month ago

    Im pretty sure its way above our heads. Because we are spending billions regardless.

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