i still dont get it..
2006-11-20 14:06:01 · 5 answers · asked by Anonymous in Social Science ➔ Economics
the people today think that its not a good thing though... why is that?
2006-11-20 14:20:16 · update #1
because it would motivate people and the government to work together and get it repaid. If the government saw that there was a debt and it needed repaid, it would motivate the government to work hard, and collect taxes from the people to pay it off. It would also boost other country's trusting of the new nation
2006-11-20 14:16:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
National debt = investment from the elite class which is Hamilton's Federalist belief in central government, rule by the elite class, government needed the support of the wealthy. This promote a strong government and from there they created the nation Bank which loan and provide currency to businesses which increase economic wealth.
2013-10-29 14:51:07 · answer #2 · answered by ? 3 · 0⤊ 0⤋
For the same reason that sometimes it is good for individuals to have debt!!!
If you don't have a place to live, it is a good thing to have a mortgage so you can have a house, right? Well, a country needs to have things that can only be accomplished through borrowing, which of course creates debt.
2006-11-20 22:12:33 · answer #3 · answered by geek49203 6 · 0⤊ 0⤋
Worlds largest Economy= USA
Worlds Largest Debt=USA (44trillion dollars)
Debt is not always a bad thing.
2006-11-20 22:17:04 · answer #4 · answered by Tempo 2 · 0⤊ 0⤋
for the same reason that a corporation needs to have some level of debt - b/c it means that it's making the best use of it's equity... for a nation it would mean making the best use of it's fiscal policy... think about it - the country owns what it collects in tax, but borrows the revenue from bond sales...
it's all about making the best use of capital...
2006-11-20 22:14:32 · answer #5 · answered by forex 3 · 0⤊ 0⤋