Can someone explain how national debt effects the lives of normal people? It seems like almost every developed western nation runs massive billion dollar deficits every year, and that seems to be totally fine. Nothing bad ever seems to happen. Occasionally you hear old school conservatives saying we need to balance the budget, but why should we if every country is in debt with seemingly no negative effects?
In: Economics
Depends on how the debt is generated. If it is borrowed, large portions of the tax base go to payments and interest. If the fed “prints money” (the term isn’t literal), it makes money less valuable.
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