America Is Living on Borrowed Money

The federal debt is as old as the nation, and adding to it is sometimes prudent. For governments confronting existential crises like wars or pandemics, borrowing makes sense as a way to mobilize national resources, as the economist Barry Eichengreen wrote in the 2021 book “In Defense of Public Debt.” Government borrowing and spending are necessary to stimulate the economy during recessions. And Treasuries, safe and liquid, play a critical role in the global financial system — so much so that in the late 1990s, when a period of economic...