Right near the top, the authors briefly mention their critical assumption: > As we have discussed elsewhere, government debt reduces economic activity by crowd

Right near the top, the authors briefly mention their critical assumption: > As we have discussed elsewhere, government debt reduces economic activity by crowding out private capital formation ... I stopped reading at that point, because many economists disagree with that assumption. To understand why, consider: * When the US government borrows to spend on things like, say, battleships, fighter jets, satellites, AI software, etc., every dollar it spends is a dollar of revenues to a private company like Lockheed Martin, Raytheon, Amazon, Microsoft, Palantir, etc., which invests in its business, inducing private capital formation. * When the US government borrows to spend on healthcare, every dollar it spends is a dollar of revenues to a private hospital, vendor, practice, or doctor, all of whom invest in technology, facilities, training, etc., inducing private capital formation. * When the US government borrows to spend on anything, every dollar it spends is a dollar of revenues to a private entity or citizen -- who else? What matters is whether that entity or citizen invests a portion of those revenues in endeavors that induce private capital formation in the US. Things are not as simple and clear-cut as the authors would like them to be!