“We can not run trillion dollar deficits year after year. That is just an impossible one for the market to absorb. The second thing would be, how would we service that debt down the road? Are we increasing of our productive capacity enough that we can pay it off? If we just are borrowing money to do consumption we will never be able to pay it off.
And guess what, Roosevelt’s debt got paid off by WWII. WWII was the biggest destruction of capital, and human beings too. So the debt got paid off. We had to build new stuff, and we had an income generation again, and we paid it off. So, destruction of old capital is the solution to building new capital.”
– Rajeev Dhawan, Director of the Economic Forecasting Center at Georgia State University, explaining the economics of paying off massive Keynesian debt, on the Bill Handel Show, KFI 640, Jan. 25, 2010.