We absolutely need to pay off the debt, and I hope it happens. But everyone needs to know that it comes at a big economic price. Running a budget surplus, or even getting close like we did in 2000, is really bearish for the stock market, and brings an economic depression.
The last fiscal year that actually saw the debt actually go down was 1958 (#3 in the chart). Even though we were told there was a budget surplus in 1998-2000, the debt still rose every year (#4). So it was not a real surplus. But it was still enough to kill the Internet boom and push the U.S. economy into a depression in 2001.
The post-WWII economy (#2) was really bad, in part because of having to shift from wartime manufacturing to something else, but also due to aggressively paying off the war bonds.
There was also a surplus in 1929 and 1930 (#1 in the chart), as President Hoover saw the economic trouble coming and wanted to make sure that he reduced the federal debt.
Mr. Keynes had a few things to say about how this was doing it backwards. So, yes, let's pay off a bunch of this debt we have run up. It is our moral obligation. But let's all understand what that is going to mean for the economy, and how tough it is going to be.
...this is the hell-hole predicament that the US is in, and Trump can't change any of it.
...no President would run a budget surplus and condemn his citizens to the misery, so Trump would cut taxes, blow the deficit and increase the US debt and run the printing press harder.
....the further out the debt gets, there will be no way it can ever rein it back.
....as David Hunter said, US is cornered and will run the printing press until it no longer can and that could be just under 10 years away.
