I really like this video. It correctly points out many challenges we may still face today.
Let’s start by defining a few things.
moral hazard: “A moral hazard is where one party is responsible for the interests of another, but has an incentive to put his or her own interests first.” http://www.cato.org/pubs/journal/cj29n1/cj29n1-12.pdf
crowding out: Governments often borrow money (by issuing bonds) to fund additional spending. The problem occurs when government debt ‘crowds out’ private companies and individuals from the lending market. http://www.investopedia.com/terms/c/crowdingouteffect.asp#ixzz1W9e6tlsc
A question to consider when you hear about the government borrowing more to pay for a program: Is the program or service so important that you are willing to borrow from China to pay for it?