When is a country’s debt too much and what happens when it crosses that?

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So apparently pretty much every country in the world has a national debt that is ever increasing. Different elected governments try to enact savings to stall the debt growth with varying degrees of success, yet always the debt grows. Often I hear it said “we cannot afford these social changes, the national debt increase is not sustainable” etc.

So please, if you can to me how national debt works and what is too much?

In: Economics

6 Answers

Anonymous 0 Comments

From what I understand debt isn’t a bad thing. The important thing is the interest.
That being said some nacions pay even 10% of their Budget to repay Debt

There has been cases where Debt is use to pay Debt ( this work if one has lower interest rates )

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