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Why We Should Never Pay Down the National Debt

16 Pages Posted: 9 Jul 2012 Last revised: 19 Jul 2012

Neil H. Buchanan

George Washington University Law School

Date Written: 2012


Calls either to balance the federal budget on an annual basis, or to pay down all or part of the national debt, are based on little more than uninformed intuitions that there is something inherently bad about borrowing money. We should not only ignore calls to balance the budget or to pay down the national debt, but we should engage in a responsible plan to increase the national debt each year. Only by issuing debt to lubricate the financial system, and to support the economy’s healthy growth, can we guarantee a prosperous future for current and future citizens of the United States.

Keywords: National Debt, Deficits, Fiscal Policy

JEL Classification: E6, H6

Suggested Citation

Buchanan, Neil H., Why We Should Never Pay Down the National Debt (2012). University of Louisville Law Review, Vol. 50, 2012; GWU Legal Studies Research Paper No. 2012-56; GWU Law School Public Law Research Paper No. 2012-56. Available at SSRN:

Neil H. Buchanan (Contact Author)

George Washington University Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States
202-994-3875 (Phone)

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