Spending and Saving

"Each dollar spent by the federal government creates no sustainable income, yet the interest payment incurred with each borrowed dollar creates a subtraction from future revenue streams of the private sector."

This, from Lacy Hunt, is the nut of the problem created by the federal government in their efforts to solve a problem. The other two factors are housing debt, that does not finance expansion but is static in the present and demanding in the future and the fact that most debt is being used to live, again immediately static but long term demanding.

It's not for nothing our savings rate has dropped from 15% to zero. And savings is where investment comes from.