February 26, 2010 With talk of fiscal commissions and falling
credit ratings, the federal debt has become a front-and-center
issue in Washington for the first time in over a decade. Even
those who call loudest for debt reduction, however, can't agree
on how much is too much. The debate over acceptable levels of
debt and deficit has engaged economists and philosophers for
years, with giants like John Maynard Keynes arguing for
aggressive deficit spending during downturns, and Milton
Friedman cautioning against well-intentioned efforts to
micromanage an economy. The argument is alive today as America’s
debts pile up. But paying down the government’s debt can also
cripple the economy. Where, then, is the perfect intersection
between the need for growth, investment and ongoing services and
the need to balance the budget? The number, according to
experts, will emerge as some ratio of the nation’s debt to gross
domestic product, a figure that crept above 50 percent in 2009
for the first time since World War II. Is