What is the cause of national debt?
First of all let’s handle what is national debt. It is the money owned by any level of the government to other governments.
The problem is that governments have been exercising the practise of thnking “long-term” whereas they have not been thinking long-term, because future can differ in the standards.
Let’s take a US national debt for example. The sum is astonishing – when recalculated for each citizen of the USA we are talking about $34,840! This should be considered to be a problem, but basically it is not.
There is no paradox, but WHO can beat out the debts from the USA? Moreover, who is interested in USA to get down to the ground will all debts paid off, this will ruin the country which is one of the biggest consumption markets.
Definitely there is nothing to boast about with this kind of national debt. But no need to run in chaos screaming ‘HELP!’ as well. During the nearest years no one would be interested in bringing USA down to finandial ashes.
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