Going into debt is a big problem if it eats up all of your tax revenue to service it. The WW2 debt was managed by growing the economy to the point where the debt became a small fraction of tax revenue. It seems impossible for modern economies to grow like that today.
> The WW2 debt was managed by growing the economy to the point where the debt became a small fraction of tax revenue.
The WW2 debt problem in the US was managed by roughly tripling the share of the economy taken in in taxes, not just growing the economy. Taxes aren't fixed.
> Going into debt is a big problem if it eats up all of your tax revenue to service it
It's a big problem if it eats up all of your productive output; tax revenue is an arbitrarily-adjustable figure.
OTOH, if your debt is denominated in your own currency, so is (in real terms) the debt itself.
