"debt is virtually a necessity created by prosperity: otherwise, the folks with all the capital end up with very lumpy mattresses. Take the Japanese government

"debt is virtually a necessity created by prosperity: otherwise, the folks with all the capital end up with very lumpy mattresses. Take the Japanese government debt..." Very incorrect. It was the Japanese government that decided that instead of demanding the banks to be responsible for their risky and ultimately bad real estate investments, they would prop the banks alive by stealing from their citizen's savings via massive borrowing. Fast forward to today: Japanese elders have their savings dwindled down, the government owes 200% GDP debt to its people, and the Japanese economy/innovation stalled because the 0% rate for 20 years policy drove all investments overseas. There are many people that think US will have the same fate as Japan, but they're also incorrect. Japan had the massive savings rate and a booming global economy to prop itself up. US will have no such luxury. And there are many other people in this thread who thinks debt is a good thing. Well, when the US government, having to pay out 65T in medicare and social security in the next 20 years, decides not to one day, you'll see why that's bad.