Either you completely misunderstand Krugman, or you misrepresent his point of view. Long term debt is of course an issue. The key point here is "long term". However, since the financial crisis we have a lack of demand and extremely low interest rates, actually threatening deflation. In this situation stimulus by the government to make up for demand in the market is needed (Keynes - and Krugman is nothing if not Keynsian). Borrowing at record low levels until wages and inflation pick up a little bit are exactly what is needed.
The US has been using debt financing since the founding of the republic. Why on earth it is a problem now is a mystery. Actually, it is not a mystery, it is disingenuous. When it comes to financing everything except domestic programs that help people, then debt is no problem. We don't build fighter planes and submarines in one year paying cash. We finance them. Having debts to pay for schools, bridges and hospitals are also long term liabilities that our grandchildren pay for. We do it, because any person who knows their history knows that we get more out of those schools, bridges and hospitals than we put into them. Even more so with preventive things like health care. It is much cheaper to treat diabetes early on than to pay for amputating someone's leg and the subsequent physical therapy, crutches and/or artificial limb.
That is the long response, the short response is, "So what if we have debt?" A bit of debt and a bit of inflation are exactly the way to grow the country. Always have been. If you don't believe we should have debt, then you don't believe in America's future.
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Perhaps Krugman’s Grandson Will Understand Government Debt
Either you completely misunderstand Krugman, or you misrepresent his point of view. Long term debt is of course an issue. The key point here is "long term". However, since the financial crisis we have a lack of demand and extremely low interest rates, actually threatening deflation. In this situation stimulus by the government to make up for demand in the market is needed (Keynes - and Krugman is nothing if not Keynsian). Borrowing at record low levels until wages and inflation pick up a little bit are exactly what is needed.
The US has been using debt financing since the founding of the republic. Why on earth it is a problem now is a mystery. Actually, it is not a mystery, it is disingenuous. When it comes to financing everything except domestic programs that help people, then debt is no problem. We don't build fighter planes and submarines in one year paying cash. We finance them. Having debts to pay for schools, bridges and hospitals are also long term liabilities that our grandchildren pay for. We do it, because any person who knows their history knows that we get more out of those schools, bridges and hospitals than we put into them. Even more so with preventive things like health care. It is much cheaper to treat diabetes early on than to pay for amputating someone's leg and the subsequent physical therapy, crutches and/or artificial limb.
That is the long response, the short response is, "So what if we have debt?" A bit of debt and a bit of inflation are exactly the way to grow the country. Always have been. If you don't believe we should have debt, then you don't believe in America's future.