if we do not start paying down the debt, we will run into major problems. If the world stops buying US Treasury notes, we will have to find some other way to get the money to pay for our deficit spending.
First (quick) point: most of the US debt is owed to US citizens.
Then: You shouldn't ever have a (sizeable) surplus if the government is running correctly. Any government can pay back its debt by increasing taxes or by printing more currency. Both of these policies would be irresponsible.
It is much more fiscally responsible to balance the budget (erring slightly either way doesn't make a big difference), and reduce the effect of the debt due to (1) an increased GDP and (2) inflation (the time value of money decreases).
Anybody who really wants a sizeable surplus is confusing micro-economics with macro-economics, or needs to read more articles where Nobel Laureate economists give their insight, rather than just making stuff up.
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Dump her. She has trust issues. I'm serious.
First (quick) point: most of the US debt is owed to US citizens.
Then:
You shouldn't ever have a (sizeable) surplus if the government is running correctly. Any government can pay back its debt by increasing taxes or by printing more currency. Both of these policies would be irresponsible.
It is much more fiscally responsible to balance the budget (erring slightly either way doesn't make a big difference), and reduce the effect of the debt due to (1) an increased GDP and (2) inflation (the time value of money decreases).
Anybody who really wants a sizeable surplus is confusing micro-economics with macro-economics, or needs to read more articles where Nobel Laureate economists give their insight, rather than just making stuff up.