And this is why planned economics don't work. The whole point of the government borrowing money, putting more debt into the market, is to encourage you to borrow more money. In fact, it has the opposite effect, because people are so scared of losing their jobs, they're willing to lose wealth over the long term by paying down debt faster, and saving more, in an inflationary economy.
Ah well... As long as someone is still blowing the "we can borrow our way to success!" trumpet, people will believe it I suppose.
So I'm mistaken that the point of gov't debt is spending more than it makes?
I'm not sure how you can credibly claim that the point of the Gov't borrowing money is to encourage you- -the citizen-- the also borrow money. If anything, gov't bidding for credit should drive up the cost of that credit (higher demand) and raise rates, making consumer borrowing go down, not up.
Alas, the gov't not only bids, but also prints money. So it can set the price and the quantity both. The point still stands, though.