2. U.S. total public debt stood at $27.7 trillion as of Q4 2020 or about $86,000 per person in the US. It seems that this number is very large and we should be concerned about it.

a. When we start to think about who actually owns U.S. debt, does $27.7 trillion seem like the appropriate figure for how much debt we owe to private individuals or organizations?

b. Many people do not want increases in federal deficits and debt because they fear that their grandkids and future generations in general will have to pay it back. Why should they not worry about this?

c. Another reason people do not want the federal government to run deficits and increase the debt is because one day China might stop lending us money (i.e. buying US bonds). Why do we not have to worry about this?

d. Others fear that if the U.S. continues to run fiscal deficits and increase U.S. debt that well turn into Greece, a country that could not access cheap financing for its fiscal deficit (locked out of bond markets), so they had to engage in deep spending cuts (austerity). Why do we not have to worry about this?

e. Finally, some argue that if the U.S. does not pay down its debt and repay its bonds it will for some reason head to disaster. What does historical experience tell us when we have run budget surpluses in the past to pay off our debt?