Question

Conduct an Internet or library search (library searches provide more credible sources) and find two articles: 1) in favor of paying down the national debt, and 2) not concerned with paying down the national debt. Review both articles and include the following in your post:

1. A one-paragraph summary of the article in favor of paying down the national debt.

2. A one-paragraph summary of the article not concerned about paying down the national debt.

3. One-paragraph stating your opinion about whether or not it is a concern to our long-term economic stability to carry the current debt. (Link your comments to information from the textbook and include it as a reference.)

4. Use citations (author, year) in all paragraphs with information from sources. 5. Include full APA references at the bottom of your post.

please include the title of both articles so I can be have access to it. It's very important. And please each paragraph should be 300 words please. Thank you.

Answer 1

Summary on the article "Why should we worry about the national debt", published on april 16, 2019 on CRFB website.

SLOW GROWTH - It is due to the crowding out effect, investors purchase government bonds and securities, instead of making productive investments, this leads to decreased capital formation, and the employment that would have been generated is not generated due to it. Less investment means less buildings, machinery, equipments, technology, etc

DEBT SERVICING - As debt rises, interest payments also rises, In 2018, government paid 1.6 percent of GDP as interest payments. Overtime this will lead at the cost of other necessary public programs.

PUSHING UP MARKET INTEREST RATES - Government issue bonds, securities, so the lenders will demand a rate of interest higher than what government is providing if some other investment needs money.

Rising debts also increases load on future generations, debt servicing is continued untill the principal amount is paid back, so future generations will have to pay taxes that will contribute in interest payments, Rising debt also reduces nations ability to combat any crises in future, War, medical emergencies, may lead to even more debt, and make take a longer time to recover.

Another article on not concerned about paying down national debt, summary on article "why the 22 trillion national debt doesnt matter" - heres what you should worry about instead, published on feb 15 2019.

The article suggest that US economy is very strong and stable, there is no risk of default by the american government, Long run productive capacity of nations economy is secure. Productive capacity would generate incomes, and those income would generate taxes, those taxes would be used to service the debt.
The interest rates on the government securities are low, so it possible for the government to service its debt for long periods of time.
Taxation systems are strong, and tax buoyancy is good (it means the ratio of increase in the incomes of the people to increase in tax collections by the state).

My opinion - According to me, if the state is able to service its debt, then there is absolutely no problem in continuing the debt. But there should not be the problem of crowding out, government must look for the ways that investors also invest in private capital formation, prevent market rate of interest from increasing, government taking money from the market should not make any other aspect of the economy worse off. Government must use the debt in very production and asset formation projects which would create employment, and not use them on welfare schemes, welfare schemes will not generate income and thus no extra taxes would be generated to the fiscal burden would increase on the government.