How do countrys get in so much debt and why do they keep expanding on ther debt?
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It is very easy for countries to borrow money these days, compared to businesses or especially private individuals. There is a lot of political pressure on countries to go into debt, since the population wants low taxes, but lots of spending (on things like schools, health, police, roads, subsidies, grants, etc.). Unlike private individuals, countries don’t have to get approval from a bank to get a loan, they are able to sell various types of government secured products on the global markets, and there are many buyers interested in such products.
If a country is in too much debt, it needs to take severe action to pay off the debt back to a reasonable level. This generally means policies that will be unpopular with the population, such as higher taxes and less spending on popular programs. Politicians who try to do the responsible thing tend to get voted out of office by people angered by tax hikes and spending cuts.
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