Right now the economy is really slow. Unemployment rates are high, and businesses are stretched to their limits. People discuss the National Debt as if this debt was somehow the cause of the poor economy.
Historically, a high level of National Debt in the U.S. has been successful in reviving the economy. Starting with the stock market crash in October of 1929, America plunged into the Great Depression. In 1940, the US National Debt was roughly around 50%. When America entered into WWII in 1942, the US National Debt began to rise, reaching 120% before the war ended.
The US government offered public investment opportunities, tax cuts and increased borrowings to get the funds needed. As the veterans returned home, they found low interest rates and increased job opportunities.
What the National Debt means for the average citizen is lower income taxes, and lower interest rates . In the current economy, this also equates to increased educational funding and increased government investment in businesses to increase employment.
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