US federal government debt ended 2023 at a record $34 trillion. The worries are bipartisan, with both Republicans and Democrats hearing about out-of-control borrowing from their constituents. In fact, almost six in 10 Americans say reducing it should be a top priority, according to a survey by the Pew Research Center. So, it’s not a surprise that Congress is moving closer to passing a budget for fiscal year 2024 that would cap spending at $1.59 trillion which is a bit less than the $1.7 trillion in fiscal 2023.
But many of reasons why lawmakers and voters have concerns about the size of the nation’s debt – concerns that have been around for many decades - are misguided and undermine a constructive conversation about the priorities for the country. Debt is neither inherently good nor bad. As such, the question is not what’s the right level of borrowing, but rather what’s the economic return on the borrowing or the societal goals it advances.
