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Governments around the world have spent unprecedented sums — trillions of dollars — to combat the economic impacts of coronavirus. In the United States alone, the national deficit surpassed $3 trillion this year. That’s three times larger than in 2019 and some $2 trillion more than the White House projected back in February. But just what does rising government debt mean for our future? 

A new crop of economists — adherents to Modern Monetary Theory — have a bold proposition: Don't worry about it. In a modern economy, they argue, deficits are no bogeyman. And they're certainly no excuse to halt state spending on things like education and health care. 

But others are more wary. They warn that unless political leaders balance the books, soaring federal debt will undermine the nation's economic future and compromise national security and its sovereignty. So, are rising national deficits cause for concern? 

“As Keynes said, anything we can actually do, we can afford. If you haven't started worrying about deficits don't start. If you have started, stop.”

“Mark Twain famously told us that it’s often easier to fool people than to convince them they have been fooled. And the American people are often fooled into getting confused about government deficits. The word itself sounds like a problem.”

“I wish I believed in the tooth fairy. I wish I believe that Elvis still lived, and I wish you could scoff at government debt. I've got a historical question: Was Alexander Hamilton a fool?”

“Without constraints, public spending will run out of control. Expecting public politicians to resist the temptation of free public spending, it's like expecting a dog to sit disciplined before a box of sausages.”

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Four experts debate the motion: “We should stop worrying about national deficits,” in a new debate from the Intelligence Squared series. 

Intelligence Squared debate: Should we stop worrying about national deficits?

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