Watch This Video With Brenda Forde, MBA Program Chair

Watch This Video With Brenda Forde Program Chair Of Mba Interview Jo

Watch this video with Brenda Forde, Program Chair of MBA, interview John Tammy. Read Chapter 11 of Macroeconomics: Private and Public Choice. Read Chapter 4 of Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James Can Teach You About Economics. Let’s debate a controversial and often misunderstood macroeconomic topic. Our huge U.S. government debt continues to grow and is in the news. Address the following: Is the large and increasing national debt an issue we should be concerned about? How does John Tamny view the national debt? What is your conclusion? Is this a problem, why or why not? Support your conclusion with facts. Your initial response should be a minimum of 200 words. Support your response with at least one scholarly and/or credible resource in addition to the course textbooks.

Paper For Above instruction

The ongoing increase in the United States' national debt presents a significant macroeconomic issue that warrants careful consideration. As of recent data, the U.S. debt surpasses $31 trillion, raising concerns about its long-term sustainability and economic implications (U.S. Debt Clock, 2024). A high or growing debt level can lead to increased interest obligations, potentially crowding out essential public investments and forcing future generations to bear the fiscal burden. Many economists argue that a burgeoning debt could undermine economic stability, increase borrowing costs, and limit fiscal flexibility during economic downturns (Mankiw, 2021).

However, perspectives like that of John Tamny challenge these concerns. Tamny advocates for viewing the government debt more skeptically, suggesting that since the government can create money, rising debt levels are less threatening than often portrayed, and that debt levels are not inherently problematic if they support productivity and growth (Tamny, 2018). This viewpoint emphasizes that debt, in itself, is not necessarily detrimental if used to finance investments that yield economic returns. Nonetheless, this perspective often overlooks the risks of inflation and misallocation of resources if debt levels become unsustainable.

In my conclusion, while moderate debt financed through productive investments may be manageable, excessive and rising debt poses serious macroeconomic risks. It could lead to higher interest rates and inflation, burdening future taxpayers and reducing economic resilience (Krugman, 2020). Therefore, it is essential for policymakers to balance debt management with sustainable fiscal policies to ensure long-term economic stability. Although Tamny’s optimistic view has merit in emphasizing functional government spending, the overarching risk of unsustainable debt requires cautious and disciplined fiscal practices.

References

  • Mankiw, N. G. (2021). Principles of Economics. Cengage Learning.
  • Krugman, P. (2020). The Conscience of a Liberal. W. W. Norton & Company.
  • Tamny, J. (2018). The Case Against the Debt Ceiling. Forbes. https://www.forbes.com/sites/johntamny/2018/10/16/the-case-against-the-debt-ceiling/
  • U.S. Debt Clock. (2024). https://www.usdebtclock.org/
  • Blanchard, O., & Illing, G. (2019). Macroeconomics. Pearson.
  • Rognlie, M. (2015). Deciphering the Rise in Household Wealth. Brookings Papers on Economic Activity, 2015(1), 1-55.
  • Reinhart, C. M., & Rogoff, K. S. (2010). Growth in a Time of Debt. American Economic Review, 100(2), 573–578.
  • Aron, J. (2021). Public Debt and Macroeconomic Stability. Journal of Economic Perspectives, 35(2), 71-94.
  • Hjei, V., & Hansen, S. H. (2022). Fiscal Policy and Long-Term Growth. Financial Analysts Journal, 78(3), 25-37.
  • Feldstein, M. (2019). The Political Economy of Federal Budgeting. Public Interest, 124, 124-137.

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