Reply #13: Economics 101 [View All]

There's good debt and bad debt......

Going into debt to buy a home that provides shelter, tax benefits, and appreciates is good debt....

Going into debt to go on a cruise is bad debt....

A company going into debt to purchase equipment or hire more employees is good debt.....

A company going into debt to maintain its day to day operations is bad debt.

If the government goes into debt to spur the economy through tax cuts or increased government spending that is good debt....

Of course it can be o-v-e-r-d-o-n-e.....and you should have a plan to return to a balanced budget when the economy recovers....

Surpluses are good for good times and defecits are good for bad times.....

I do argree that the R's have abandoned their historical role as fiscal conservatives.... That began with Reagan's massive tax cuts....