Is There a Negative Effect of Deficit Spending?

When you take a trillion dollars and use it to buy government bonds with, that's a trillion dollars that is not doing something else in the economy. So I mean it seems like that too is one of the consequences of debt. It's not just the interest payments, it's the diversion of the capital to a different use. But spending by the government can have other effects on the economy and investment that work in the other direction. If we're in a covert 19 lockdown in early 2020 and economic activity looks poised to collapse, then deficit spending that adds to the debt has a strong positive impact on the level of investment.