This article discusses the various proposals being put forward on how best to use the projected budget surplus. The article asserts that economists generally advocate a reduction in the national debt as the best of the choices that are available, because by reducing the government s need for credit it would make more money available for private investment in new factories, technologies, and other things that spur growth. The article does not indicate how it has determined that this is a view held by most economists. Many economists attach considerable importance to government support of training education, infrastructure, and research and development. These types of public investment are often seen as providing a better basis for long-term growth than reducing the debt, which has only a minimal impact on growth.
Many studies indicate that public investment has a much stronger impact on growth.
It took 30 years for the debt to double. Then it doubled again between 1975 and 1982. This discussion of the size of debt measured in nominal dollars is virtually meaningless. The debt, measured in nominal dollars, can increase as a result of inflation reducing the value of the dollar, because of growth in the overall economy, or because of the government running large deficits. Only the latter provides a real basis for concern.