The National Debt... is it a long term problem?

[dawg]

15. A balanced budget requirement could turn recessions into depressions.

Deficit spending during economic contractions is one of the main tools we have for pulling the economy back into shape. It also allows us to spend the additional money needed to help families struggling with lost jobs and income.

Running surpluses in good times and deficits in bad times is good countercyclical policy. On the balance though, most years should be deficits. The target you want to hit is to maintain the national debt at a fixed and manageable percentage of the overall economy. That's the way to maximize output and standards of living.