The Skeptical Optimist reminds us not all debt is bad debt. One of the things I've found quite difficult in my own politics is coming to terms with the fact that not all government initiative is bad*. Likewise, Steve makes some excellent points to the effect that not all government debt is bad. Personally, I think projects which enable people to spend government funds for their own benefit (c.f. G.I. Bill, The) are best, but that's not always an easy thing to engineer, or get people to agree with.

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* Ah geeze. Someone go pick Joshua up off the floor. Wave some vodka under his nose or something.