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Not accumulating any debt (as a state) results in missed investments in infrastructure and other state expenses, wich may be cruicial for the economy. Investmen
by maze-le 9y ago
Not accumulating any debt (as a state) results in missed investments in infrastructure and other state expenses, wich may be cruicial for the economy. Investment in the energy infrastructure, payed by debt, for example benefits the whole society. Not taking this debt would be foolish since it would impair the development of your country.
Accumulating too much dept (again as a state), results in a 'trickle up' economy, where a significant proportion of taxpayers money goes directly to the banks (in the form of interest). This is foolish too, since the bulk of the population would not work for the development of society, but for the profits of banks.
>> Is it necessary to pay this money?
It becomes necessary, when you reach a critical level of debt. But I also think it is in the interest of both state and economy that a reasonable proportion of debt exists, as long as it does not exceed a certain level. The big question remaining is, what is this certain level?
- chimeracoder 9y ago> Accumulating too much dept (again as a state), results in a 'trickle up' economy, where a significant proportion of taxpayers money goes directly to the banks (in the form of interest). This is foolish too, since the bulk of the population would not work for the development of society, but for the profits of banks. ...what? No, the money goes back to bondholders, who are themselves taxpayers. I guess banks can make some profit along the way, but it's incredibly misleading to say that the primary beneficiary of interest are banks themselves, or that this is even the primary risk with excess debt.