Talk is beginning to emerge with regard to the expected ballooning deficit under President Trump.
Trump himself has said he is going to "prime the pump" and expand the deficit. It is only Keynesian economic thinking that stops mainstream media and economists from commenting on what an immediate problem this will be for the economy.
The usual take is that the deficit will hurt future generations when the debt will have to be paid off.
But this view is largely inaccurate. To be sure, when a country takes on so much debt that creditors are no longer willing to loan it more money, a debt crisis emerges (See; Greece). But until the debt reaches such crisis levels the debt can grow and grow for a very long time.
It has done so for a very long time in the United States. No one had "paid it off."
But there is an immediate problem with ballooning government debt that is hardly ever mentioned---and this is a problem that exists far before any debt crisis emerges.
It is that money borrowed by the government is money that would otherwise remain in the private sector. This is a major immediate hit to the economy.
Instead of money ending up in the hands of businesses serving consumers, consumers themselves, and entrepreneurs, The money ends up in the political world of special interests, politicians, bureaucrats, cronies and the Deep State.
In other words, the deficit problem is in the here and now as soon as the deficit expands. A growing deficit crowds out and suffocates the private sector immediately, resulting in an immediate lowering of the general standard of living.