Debt is a sign of progress. It’s a market signal about growing future earnings for families and businesses.
Despite this, politicians continue to argue the opposite. Looking for ways to demagogue the national debt, they lament the inability of our federal government to do as families and businesses routinely do whereby they “balance their budgets.” As Sen. Ron Johnson put it in a recent op-ed, “Unlike the federal government, families and private-sector businesses have to keep spending in line with earnings. To do so, they budget, estimating what their income will be and making sure their planned expenditures don’t exceed it.”
What Johnson asserts isn’t true.
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