I am far from a expert on US financial matters and I am trying to understand why the US ran such a large deficit over the last 30 odd years.
I admit that I get most of my economic knowledge second hand from a mate of mine who is an investment banker (he still has a job so he must be good ).
From what I am told by him, very short-term deficits are acceptable to avoid recessions or to invest in big, money-making infrastructure but that long term deficit spending is simply stealing from future generations.
I know the above is an oversimplification, but if it is roughly correct then why the long term deficit?
Is the reliance on debt merely due to the fact that the Chinese, Japanese, Saudis and the UK have all been happy to lend? Or is there an economically sound reason to run a deficit?
Are there any more economically minded t-natiners out there who can explain this to me.