Debt to GDP ratio is a nothing burger

Everyone panics about national debt like the country is about to collapse, but debt-to-GDP ratio is essentially meaningless for countries that control their own currency.

The US can literally print money to service its debt. We’re not Greece - we don’t borrow in someone else’s currency. As long as people accept dollars (and they will, because it’s the global reserve currency), the debt number is just accounting.

“But what about our grandchildren!” - They’ll inherit the debt AND the assets that debt purchased. Infrastructure, technology, education, research. Debt isn’t just burning money, it’s investment.

“But inflation!” - Inflation comes from supply constraints and economic overheating, not from deficit spending during normal times. We proved that with massive spending during COVID - everyone predicted hyperinflation, and it was barely noticeable until supply chain issues hit.

The debt fear-mongering is just a tool politicians use to justify cutting programs they don’t like. Notice how debt suddenly doesn’t matter when they want tax cuts or military spending, but it’s a crisis when discussing social programs?

Stop worrying about an arbitrary ratio. Focus on whether the spending produces value.​​​​​​​​​​​​​​​​