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Hi Larry Couch, I’ve always found it a bit curious that liberal leaders — whom I trust more than conservatives — don’t seem that fazed by national debt...

Your comment finally made me do a bit of research into the question of “is national debt really a bad thing?”

Here are a few things I learned…

  1. National debt is unlike an individual’s debt because a nation “has been granted the presumption of immortality by its creditors… [and thus faces] no final day of reckoning on which all debts need to be repaid.” That quote is, surprisingly, by the famed conservative economist Gregory Mankiw. The USA can keep borrowing more money, as long as our long-term economic prospects look good, and as long as our credit rating is good, which brings me to this finding…
  2. The United States enjoys one of the highest credit ratings in the world. 2 out of the 3 major credit rating agencies gives USA the highest credit rating possible. The third agency (S&P) lowered our credit rating slightly, given our recent volatile politics… they now give us AA+ rating. Terrible? Not really. That “lower” rating is gives us a higher credit rating than most other major economic powers: China, Russia, United Kingdom, Japan, France, Italy, Brazil, and The European Union.
  3. Then I wondered: which political party in the Oval Office seems to create more economic growth — which in turn, grows our tax revenues and eases our national debt? “Income growth is faster, and more equal, under Democratic presidents.” See the article and the 5 charts here. Democrats tend to raise taxes on the wealthy (more money to pay down our national debt), lower taxes on the poor + increase minimum wage (thereby stimulating a lot more spending, thereby growing the economy, which increases taxes that businesses pay).
from Salon.com article 5 charts prove that the economy does better under Democratic presidents

Thanks for your posting that got me to do this research. For this, and many other reasons, I’m with Hillary this time.

cc: Mary Holden

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