Topic: A generation spends money, a lifetime pays it back. (Read 806 times)

You raised a key and very important issues here because most countries especially African countries depends on borrowing every government that comes will finds a way to borrow and nobody is even asking how the next generation of the country is going to pay the loans with interest I think most countries are doing themselves harm by going to borrow because it's going to affect their next generation of leaders imagine a new government coming to power and is faced with loans to pay and the funny thing is that in my country most of these loans don't even get to the people and so called projects that it's ment for as corrupt politicians will hijack it at the end of the day

That's an odd assessment of it and doesn't seem entirely true. You're suggesting that older generations spent money and the younger generation are paying for it? This sentiment is usually expressed on a more individual level - where it is very easy to spend money when you're young, credit card companies are always trying to get the less knowledgeable 20 year olds to borrow as much as possible. Once they are hooked, they'll often be paying the minimum balance and simply accept paying the extortionate interest rates without even realizing how expensive it is. Being out of debt, or at least only having a low rate mortgage, is the foundation for healthy finances so we should definitely do more to educate younger generations about these pitfalls.

Debt can be fetal for any country. I will explain this through a small example . If any person is a leader of his family and he has no money to take meal for his Child but he took loan and and bought Mutton for his child and he did not pay debt and after sometime when used the all money he leave his house on mortgage. His family is happy but he has no income source and he will lose his all assets and after sometime he will be on the road. The same condition is of many countries , their politicians are using all money for their personal uses and they have millions of dollars in the bank but public is poor because they have to pay more taxes to pay this money.

Infrastructure can help the economy grow and especially for rural areas the government must provide easier access for the community. For example, building better roads so that farmers and gardeners can easily transport their crops to be taken to the city, but the opposite happens because the countryside is not well touched so that the lives of farmers or gardeners are difficult to access. Vehicle taxes will flow at all times but the community itself is unable to enjoy decent infrastructure until now, especially for rural areas.

Villages seem neglected because the central government does not create an even program and recently the government is making efforts for food self-sufficiency and maybe we can see the equality that will occur in the coming year and hopefully the program can be touched well for all people in the village.

The problem is the interest, because if you grow your debt too much without paying it, you are just paying interest in billions for your debt, it's not even going against your debt itself, it's going towards interest and that's the biggest trouble both nations and also people personally have trouble with. They take out student loans, and pay it for 20+ years, when in fact they pay it under 10 years, the rest is just interest for having such a long term, or buying a house, you can get as much as 30 year mortgage, when in reality you are paying it a lot quicker, but most of that goes to interest because of how long term it is.

When that's personally, it's a long year when you consider 30 years, but with nations we are talking about debt being reality forever, it' whatever you exist, it never ends, like USA will not be debt free in 30 years, they will have that in 50 too, in 100 too, debt just grows and interest grows too.

The person that invented debt system is a genuine person but he never put corruption into consideration while making it adoptable by many countries. Any country is entitled to borrow under some conditions that you can only broow when your total generated revenue and production is greater than what you are borrowing, In fact, borrowing morr than 50% of what you country is making in a year is economical suicide but our lawmakers are very corrupt.

What you are borrowing should be for either infrastructure or development and not for embezzlement. I don't know for other countries but money borrowed in my country are been allocated for different projects and I can tell you that most of the funds are been embezzle all the way the top of the high officials to the local project awards, everybody makes sure they eat from this money and after the 4 years, the government end up doing nothing and the next government comes and inherited the next debt.

I think it has become a trend where governments in almost all countries except developed countries consider borrowing as their earning money and they spend that money as if it were their own money. But because of this borrowing, countries are losing their wealth and are also becoming financially weak. If governments want to increase their corruption instead of suppressing it, I don't think there will be any good solution.

Moreover, the developed countries are just sitting around lending money. They will lend money at high interest rates with various conditions and if a country fails to pay the borrowed money, they will definitely have to give value for it. Which is what Sri Lanka did. However, the country's skilled and honest leadership has been able to pull them out of that dire situation.

Loans are not needed to stabilise economy, they only say this just to deceive people, the truth is that the people in charge of government don't even care about the economy because if they care to don't need to go for loan. You can only improve economy by being productive. The more you go for loan the more economy becomes very weak. The present leaders they go for the loan which will be a benefit for them  knowing that if they are not able to pay back the loan, the next set people that will be in charge can pay up the debt.

Such things still often happen in the country where I live now, although this may still be considered reasonable because the urban area does need to be polished so well. But for rural areas, it also needs to be touched by the government because resources in rural areas can also help the economic system for all levels of society today. It's just that if the loan is too big to cover, of course it can also burden the community because the percentage of tax will continue to increase so that the amount of tax will also increase and difficulties will continue to exist in everyone's life.

So the government must be able to find a better solution for this so that it can provide a level of welfare that is so evenly distributed for all levels of society. Because when everything is high enough to reach, of course the ones who will be able to survive without difficulty are the rich people.

If you can help it, don't borrow money at all. Especially not to "go to college". Because unless you are one of the lucky few whose degree is not only useful but also helps them land a well-paying job, you're going to spend forever paying off that debt.

And when you start a family then there will be even less money for repayments.

This is thoughtful. There is no trust in government that has no social justice system and strong institution that would go after such leaders who borrow those monies with nothing to show on it. To borrow money isn't bad if it is well utilized because it will help the system grow fast in infrastructures/capital projects and human capacity development if channelled into educational research as it will also create innovation and entrepreneurship development that will also at the long term help the economy.

The challenge however is that some leaders borrow such money for personal use so that when they leave government, they will establish themselves with the money while the project they were suppose to do with it is left out for next generation and the circle continues.

I dont think so. I really doubt that when I work now and pay taxes, there is a special bank account for me, where part of my taxes are being kept to pay me when I retire. Pay paying income tax I only accumulate a number which I will be paid. And when I retire, from taxes of those who work, my pension will be paid. Correct if I am wrong, but that is how I under taxes and pension works. It will be not smart to keep part of my taxes for pension somewhere for ages. It will freeze large amount of money. Imagine people work for 50-60 years, and somewhere is held an amount for 59 years? This place must be very secure then against everything.


Saying such thing to children wont be correct, as they can replay that they did not asked to be born. I think children dont owe anything to their parents except respect.

The loan system will continue to ensnare and connect to problems in the life of the nation because the government must think about the costs that must be paid consistently. The purpose of the loan is to develop infrastructure and for the economic growth of a country to be better, but in practice it does not go according to expectations and in the end the people are forced to pay taxes to cover loans to other countries. Infrastructure is also built not because of the rightness that suits the needs but becomes a priority for urban areas while people in the villages do not get adequate access to infrastructure.

Managing a country is indeed not easy and that's where we see the capacity of leaders who have ideas for progress and most importantly any development will be touched according to the needs of the community in developing a creative economy based on independence. If society is prosperous, it will be much easier for the country to get out of debt because the system can run well and income per capita can also increase.

This is more accurately called an economy with a vicious circle system. Debt will be a binder for each generation that continues to bear the consequences of government carelessness in making decisions. This debt is then utilized in sectors that are sometimes not in accordance with the objectives. Infrastructure is still stagnant, people's welfare is never achieved because in the process the people are burdened with higher taxes. That is why the debt system to the world bank will continue to be a vicious circle that has no end.

Thats how business works and banks would really be that having that kind of criterias on who would be the one that they will really be giving loans. As for those old people then it is really that understandable that they wont really be offering any loans because of the time that left into their life span on which if they would die because of illness or because of being too old then that would really be that able to lose everything that they have lent on a certain person, thats why there would really be those age brackets on who would really be able to quality on getting some loans, but somehow there would really be some exemptions when it comes to this specially if that old person does have some valuable collaterals on which the bank could be able to pull it off, then its something that there will really be some reconsideration.

Banks are businesses on which its normal that they will really be that needing an assurance that those lendors will really be able to repay it up completely on the loan that they had taken. It is normal that they will really be setting those bars high in terms of criterias and requirements because we arent talking some small amount on here. If it turns out that there's no way that you could get some loans into banks
then you dont have any options but going into those people who offers loans or going into those financing but expect that the interest rates are just that too high.

I think a pension can be passed out. That must be the reason on why you think the other pays for it, though I think they still can continue the pension of the former if they wanted to.

Retired people pays their pension when they are still working. As for our taxes, I think it goes only on the government projects like if they are planning to reconstruct something (E.g. bridge, road, etc..).

Slave seems a brutal word to be used, though sadly it happens for real. I don't mean about pension thing but inside the household only, like a parent will demand their children a money. They will say things like > 'I work hard before to raise you and give you a decent life and now its time for a payback'.

Yeah, my dad for example couldn't get any loans for the past ten years or so, and that's fine, well he could get tiny loans, like few grand, but not mortgage for example. It's clear why nobody would give someone ten year loan, when they are 65-70 years old, it's questionable that they would be paying that back, they might die, and in some cases it's true unfortunately. So all in all, banks do not give debt to elderly, but they are refraining from giving it to young people these days too, the rates are too high, and that means there is really no way most of these people would pay.

This makes default rates increase a lot, and that is why it's really not ideal for most people to get any loans at these rates. They still do give some loans to some people, but they rather give it to companies that does well, that way banks know that companies will pay it back, specially the strong ones, if Apple asks you for loan, would you reject it? Of course not.

In my country there is no pension system instead my government has set this system for government employees only. I know in many countries like even in Saudia Arabia you can't work after a specific time and you will be given pension. So, in simple words I am paying taxes but I won't be getting any pensions haha. only the government employees are allowed to have pensions.

BTW this pension system was a good point but for me it's not a normal thing so I don't care, I love the the last lines, the motivation is what keeps us drive, we can buy a car or showoff that we have a car, because we only borrow money when we are in dire need, like we borrow money to buy car, we won't be buying that car to flex! So, that's why I said we can showoff but that should not be our purpose. One day things have to be settled so.

spending money and you also any money is what is sacrosanct in life provided that the world is still running you will not expect first generation second generation and the third generation to act the same way that the first and second and third Generations and as I stated that both may not be the problem of economic problem now but in future generation will it cost more harm and the most spending in future, so that is why I said that spending is constant because this life will have different categories of people and the way you plan yourself is the way that you're going to leave your life so that is what I want us to understand at this moment

A person who takes out a loan must be in good health because it is unlikely that the lender will give it when they see them sick. Government debt will definitely be inherited by the next government because there is a repayment agreement based on an agreement between the two countries. In fact, I see that almost most loan services must be paid off even though the person who took it has died, unless the loan we take is insured so that when we die the debt is clean because it is paid by insurance.

Loans are also not given to just anyone because they first do a survey before deciding. I used to work in a financial institution although it didn't last long so I know a little more about how loans are given. If it is not insured, almost all loans must be paid off even if the person who took it has died.