Credit cards are dangerous. Not just because of the personal debt they can help create, but because of the change in spending habits. Statistically, you buy more and spend more when you charge because the purchases cause less "pain" than cash or debit purchases would cause. Basically, it's easier to spend money when you know you won't have to actually pay for it until later. This fact is not only accurate, but also intuitive.
But can it work the same way for governments?
The theory is this: For a government, taxes are equivalent to personal salary. If a government can spend money now, without having to use tax money right away, then there is less pain (like spending on a credit card). A government can do this by printing or digitally creating extra money (monetizing). They won't feel the pain (loss of resources) for generations, until the value of each dollar falls (because they printed so many extra dollars).
Andrew Napalitano mentioned this "credit card" theory on his show recently (see video below @ 2:38), and I think there is some truth to it.
