Most liberals these days don't worry about the debt. Even Kevin Drum, whose view I mostly follow, is rather blase about it. So why do I worry?
One word: history.
I've lived throughabout a third of the life of the nation, which included some big increases in the debt, some severe inflation, and lots of changes. Lessons I've learned:
- nothing lasts forever--the fact that inflation has been low, contrary to expectations of economists and conservative debt hawks, for many years doesn't mean it will always be low.
- inflation causes problems--it works for those with real assets, like homeowners, but not for people like those receiving aid from the government.
- rising inflation rates leads to rising interest rates, which can rapidly eat up all flexibility in government budgets. (See Clinton--whose 1992 program was killed by the bond traders.)