The fresh debate over raising the debt upper limit was not only a total waste of time, but insane, given the tremendously low cost of debt financing currently. At present, the government can borrow at 2.4 percent over a 10-year period. The 10-year rolling average of inflation hardly ever dips lower than 2 percent and traditionally runs around 4 percent. In other words, the real 10-year borrowing interest rate for the US is possible to be negative.
Government investment will make use of its possessions, put people back to work and reduce the long-term debt problems by increasing future revenues. Many individuals go up against any new debt buildup out of fear of an autonomous debt crisis, like the one taking place in the European Union.
The government can still arouse the economy, given the constraint of no new debt. People should not sit by and allow Congress to fight over unimportant debt problems.
The main problem is high unemployment and an under-productive economy. The fastest way to solve the long-term debt outlook is to resolve the unemployment problem first, produce higher tax revenues and start to pay down the debt principle once the economy's production matches its potential.