The standoff over the U.S. budget between the Republican Congress and Democratic president has had a curious byproduct: leaving more money to pay off the national debt. Some analysts are lobbying to devote future surpluses to the same purpose, perhaps eventually paying off the entire $5.6 trillion national debt, or at least the $3.6 trillion in Treasury bonds owned by the public.
Eliminating not only the budget deficit but also the national debt is obviously a worthy goal. Incredibly, interest payments were the second-largest federal expenditure in 1999.
Although low interest rates have reduced this burden, it will remain above $250 billion annually despite expected surpluses through the next decade. Americans will be paying the price of Washington's past profligacy for years.