A lot of people don't think the national debt and budget deficits have any effect on the economy, and while that just "sounds wrong" to me, I don't know how to argue with them. I've studied economics casually, but not even economists can agree on this particular subject.
I'm not sure if the national debt has much effect on economic growth. So far, the nation's "credit rating" has remained good enough to let the government keep on borrowing more money indefinitely, so there isn't any crisis on the horizon. Interest on the national debt, on the other hand, does have a negative effect on the federal budget--namely, we can't spend as much money as we would like to on other things because we're still trying to keep the budget deficit to a (cough, hack, cough) minimum. That
might slow down the economy a little bit since less public money is being spent on... well, whatever we might have spent it on is a moot point. Bush's tax cuts have greatly reduced revenue, which of course makes the deficit larger every year, but that doesn't mean the government is spending less money. So again, we're still "priming the pump" (to use the language of bogus Reaganomics), so I don't know if the economy is being hurt by a lack of public investment. Personally, I think the biggest problem with the federal budget is that many of the things we're pouring money into, such as the Iraq war, aren't helping this country one bit. In other words, we're wasting resources, and that has to be a "bad thing". But if we weren't spending that money on the Iraq war, that doesn't mean we'd be spending it on better things; we probably wouldn't be spending the extra money on anything at all, and we'd simply have a smaller deficit. In other words, I'm not sure how much difference it would make if Halliburton and Chalabi got less money from our government, which is borrowed money that we're never going to pay back, anyway. Maybe things only look bad on paper.
Moving along to a more humorous subject (and getting back on topic), the Bush administration's so-called "AIDS czar", who has emphasized faithfulness and abstinence over condom use to prevent the spread of AIDS, has just resigned from his position as Deputy Secretary of State amid reports that he has repeatedly patronized an escort service. Obviously, he himself is neither abstinent nor faithful to his wife. If he were a Democrat, this would be a major scandal.