Specifically, in 2014 $271 billion were spent on interest payments to those holding US debt. That is $271 billion dollars that wouldn't need to be gathered through taxing and more loans if we had balanced budgets.
In case thinking about the regular effects of the national debt is not convincing, in the light of Halloween we will look at some scary situations : )
If you believe in Keynesian economics, it is nice to run some surpluses so that running a deficit (selling bonds so that the government can spend a lot one year) can be used to pull out of the occasional recession.
Senator Mike Lee has supported a balanced budget amendment to the Constitution. This would require our two-year budgets to have at least as much tax revenue as spending, allowing congressmen to bring deficit budgets to the court; two-thirds of both houses of congress would be needed to raise taxes or run a deficit. I believe that such a structural change is necessary. For some reason, it is hard for politicians to cut specific programs even though they would like government spending to decrease. Bills with higher spending than revenue, like the one passed in the Senate yesterday, would come to be unacceptable and a balanced budget would become the norm, we hope : )



