Clearing the national debt would create fiscal room, though a state may still have reasons to borrow. Debt for a hospital, road, school, or port resembles a mortgage used to acquire a lasting productive asset. That capital investment differs from repeatedly borrowing to cover routine operating costs. The exchange places defence spending inside a broader question about state capacity, infrastructure, and the purposes for which public debt is incurred.
Notable Point · 50:55-52:20
Capital investment versus operating debt
The force-rebuilding scenario opens a wider discussion of why borrowing for durable infrastructure differs from funding ordinary operations through debt.