POLICYMAKERS SHOULD REDUCE THE GOVERNMENT DEBT

The U.S. federal government is far more indebted today than it was two decades ago. In 1980, the federal debt was $710 billion; in 1999, it was $3.7 trillion. If we divide today’s debt by the size of the population, we learn that each person’s share of the government debt is about $14,000. The most direct effect of the government debt is to place a burden on future generations of taxpayers. When these debts and accumulated interest come due, future taxpayers will face a difficult choice. They can pay higher taxes; enjoy less government spending, or both, in or...

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