We borrow money when we buy a car or a house and we all imagine a time when we can pay off all our bills and live off the interest of what we've saved, but it's pie in the sky. We have to think of the country like a citizen of the world where we have to borrow from the world bank to compete in the big market. Where would we live if we didn't borrow? We need to think of borrowing as a hedge against inflation and devaluation of the currency. As long as we owe trillions of dollars to other people, there's no incentive to make that money worthless.
It's sort of like in a bad economy if you think you might have to file bankruptcy, you'd rather be deep in debt than just a little in debt if it's all going away. Why would we want to pay off all the bills? It doesn't make it any easier to survive. If everyone else owes us money, they aren't going to repay any more than we're going to repay them. The house of cards will keep going until someone knocks it down. Just start building it again when that happens. You've still got all the cards.
If I pay off my house, my wife will just start buying more crap.
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