> If you "borrow" $100 and "buy" $100 with it, nothing has changed. You didn't spend anything hence you didn't incur any additional debt
This is incorrect. You’re confusing a neutral net worth with a lack of debt. They’re not equivalent.
If you borrow $100 then you have incurred $100 of debt. It doesn’t matter if you still have $100 in your hand, you still have $100 of debt to service.
That last part is important: The government would have to service the interest on the money they borrowed. As time went on, the effective size of the debt will grow.
This is incorrect. You’re confusing a neutral net worth with a lack of debt. They’re not equivalent.
If you borrow $100 then you have incurred $100 of debt. It doesn’t matter if you still have $100 in your hand, you still have $100 of debt to service.
That last part is important: The government would have to service the interest on the money they borrowed. As time went on, the effective size of the debt will grow.