With interest rates at historic lows, some are arguing this is the perfect time for government to be borrowing more money.
Stan Callender says despite the furor surrounding debt, the government should be borrowing more not less money.
He says there are good reasons why it's prudent to borrow more right now.
- Low interest rates can help facilitate capital projects
- Borrowing long-term at low interest instead of short-term is a fiscally prudent move
However, he understands why debt is such a huge political issue.
The real question is why government borrowing has been and continues to be such a political issue and why the tea partiers in the Republican Party continue to insist it's the tool of the devil.
The whole issue of federal debt has nothing to do with facts. As I've stated many times before, government borrowing is an emotional issue for the tea partiers; the facts simply don't matter.
Because of this, no candidate for election or reelection is going to defend government borrowing or publicly conclude that financially it's the right thing to do in the current environment. By definition, emotional issues cannot be successfully responded to with facts and figures. Trying to do that makes you seem like you're part of the problem...even if there really is no problem.