Deficits and the balanced budget does it matter?

Deficits matter when they are a substantial portion of the GNP. We have the largest debt in history but a GNP so huge that we don't get a bad credit rating.

For a country whose credit isn't suffering from debt it's more important to achieve economic goals than it is to reduce the debt.

BTW, I didn't read the link (I almost never read posted links) so I hope I'm on topic.

craven

The argument that the debt is not a significant amount when compared to the GNP is used whenever a large expenditure is made or in this instance debt.
Is it significant when the parts are far greater than the whole. Indeed it does. The administration has finally admitted that the deficits will continue to mount for as long as the eye can see. At some point in time the bills will have to be paid. Add that to the significant difficulties anticipated with SS and there is no doubt we will be in a fiscal bind.

I'm not saying debts are good, just that economic stability is better.

One are in which the defict is good is in the principle "If you owe a man 10 bucks it's your problem, owe him 10,000 it's his problem".

Owing world banks so much is one thing that gives us so much say in what they do, and this gives us strategic advantages.