Author Topic: Government Debt?  (Read 279 times)

Offline Greattw

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Government Debt?
« on: November 11, 2013, 04:06:28 AM »
How can a government acquire debts? Are the taxes that it gets from its citizens not enough? How does the government pay its debts?
« Last Edit: November 11, 2013, 04:06:28 AM by Guest »
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Offline SpinningQueening

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Re: Government Debt?
« Reply #1 on: November 13, 2013, 04:25:31 PM »
Government debt is an ac*ulation of budget deficits. The federal government has been cutting complete tax while increasing spending that includes the economic stimulus package. Some holders of the debt wants larger interest payments for them not to repaid any amount *rther. This is also added interest payment expense to a government to keep debt within reasonable limits.
« Last Edit: November 13, 2013, 04:25:31 PM by Guest »
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Offline BugsSpinning

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Re: Government Debt?
« Reply #2 on: November 13, 2013, 04:35:30 PM »
From what I have learned in economics 101; the government borrows from financial institutions like the World Bank because they use it to build infrastructure and social development programs. Sometimes, the taxes that are able to get are not enough to pay for the programs they have lined up. Additionally, the taxes are sometimes earmarked by law to be used in other areas.
« Last Edit: November 13, 2013, 04:35:30 PM by Guest »
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