•December 26, 2018•

By Jim Nowlan
NP Guest Columnist

In the past week or so, I have seen articles in the Wall Street Journal, the Economist, USA Today and elsewhere sounding alarums about debt, and of how it could overwhelm us, leaving us no wiggle room to fight the next recession with the stimulation that debt can provide.
My lame excuse for not paying more attention is that I relied on conservative Republican budget hawks to battle debt. But no longer. Your tax relief in 2019 from the GOP-led 2018 congressional tax cut bill is paid for just about dollar-for-dollar with increased debt, $1.5 trillion of it.
The great English economist John Maynard Keynes theorized that if governments basically saved for a rainy day, nations could largely avoid the typical economic booms and busts endured by societies.
That was fine in theory, but elected officials have become addicted to debt as a way of doing things for people right now. Let the devil pay the bills later, probably long after the debt-happy elected officials have retired from public service
Instead, the new tax cuts stimulate an already stimulated economy, and beneficiaries enjoy the ride, while it lasts.
Debt can be good, of course. Debt built the U.S. economy, by making homes, autos and appliances possible via installment loans. And loans often built the railroads, bridges and infrastructure of our society.