Arguments for Maintaining Debt

• Most of the borrowed money is owed to ourselves and we receive interest payments.
• We can afford the debt even though the debt is increasing, it is declining as a percentage of the gross national product.
• The real cost of the debt is the interest payment. We have low interest rates on the loans.

Arguments for Eliminating Debt

• The percentage of interest payments going to foreign investors is increasing
• The tax burden, due to interest being paid from taxes, may decrease
• Federal spending, due to the freedom to increase debt, may encourage waste,