Topic: A generation spends money, a lifetime pays it back. (Read 441 times)

I agree 100%, 80% of people are in debt all their lives.

I think your point is towards what underdeveloped countries do, the previous generation tried to borrow money under the pretext of improving human resources, but behind all that they also work like a saw, every swing will produce money into their pockets. While the next generation is responsible for paying it back, as far as I know, the new government also has the same ideology, borrowing money under the pretext of wanting to solve more complex problems. This problem is too complicated, it might always revolve around the same line or be like a relay that has no finish line.

The IMF or developed countries that have a lot of money will always reach out to lend money to underdeveloped countries, they also have goals, Some countries have to lose their assets because they fail to pay their debts, such as Sri Lanka having to lose its ports and airports because it failed to pay its debts to China.

The essence of a modern economy is to help one with lesser resources gain access to extra resources, which could be used to invest in areas that matter and be productive in order to stand out and meet up with innovation.
 
The problem starts with either loans coming with high interest rates, making it difficult to meet up the demand, or the most common issue is spending that borrowed money on things that can't be accounted for and having no plan of repayment being laid, which is why some governments go from loan to loan, servicing existing loans, and also borrowing new ones to hand over debt to upcoming ones instead of reducing it.

But we shouldn't forget that in every challenges lies a way out of it, when things like this happens, then we must be ready and able to hold ourself down to the capacity of what we can offer, when we are not too dependent, then we are most likely not going to get affected by the way of the effect of these governments actions and inactions, because we are less dependent on them or their economy policies, instead being independent.

Try to look on a situation when one generation takes a loan, and next generations duty is to pay it back as following - all those loans are long-term investments, and the products they were taken for, will start to become profitable only in tens years or even more. Generation that are to pay back loans, are the one who will get most profit from such investments. For example several countries spend millions to build railroad connection, but next generation will be one who will be its main users or tracks will be their main link to other countries.

I often hear how people complain, that their government took huge loan, and their children will be the one who will have to pay those loans back. But those children, when they grow up, will be main users of infrastructure, technology or whatever those loans were taken for.

Borrowing money isn't a problem if this money is being wisely and efficiently invested by the countries. It means the country is developing new sources of future incomes which can be used to pay for the loans, while generating value and quality life for the citizens of that country.

Even billionaires and millionaires take loans to boost their businesses, and on long run it's worthful because if they had to save their own money before starting a new investment, it would a long time. And as we know, time is money in financial world.

The problem here lies on the fact most managers borrowing money aren't planning carefully how they are going to use it. Then they are creating only debt for future generations.

To some extent, he is not wrong. Theoretically, you are right. That's what true economy should do if you are borrowing for production, there will be more economical growth to pay back in the next generations without putting burdens and making the economy becomes international debt zone. However, we know that politicians are very reckless when it comes to spending, they will rather borrow money for consumption without thinking twice.

Look at the concept of Nigeria borrowing system, they depend on Crude oil, 10 years production of crude oil has already been used to borrow loans to pay back oil that hasn't even be extracted from the well. Now, the new government is extracting oil but some huge percentage has already been signed as loan, part of the money are used to service debts and the country can't do anything. Some of the money that were borrowed weren't used for what it was intended, they were stolen and looted, this is not production nor consumption but corruption.

If borrowing money to elevate the hardship in a country can be seen as a good move but borrowing for personal use and living the generations to come to scrabble on how to pay the borrowed money back then it’s wrong. Some western countries indulge in such act which make them vulnerable to the western world,exposed them and makes them to use their resources knowing fully well it will be hard for them to pay back the loan.

The concept of the recent world economy involving in loan and repayment most often can be handled if only the leaders can manage their little resources. This definition is not just about the government rather generally from my perspective, spending money unnecessarily when you know fully well there’s more to come afterwards no proper account how and when they finished the loan and I completely understand if the next generation has to pay massively for the mistakes. Depending on the kind of loan and how long will it take paying this loan.

The idea of a nation taking a "loan" or basically be in debt, is growth. I mean if you are taking debt but not growing then you are making a mistake, that would not make you better. Logic is that, it could be tax, or it could be a leftist nation that owns factories or something, doesn't really matter, the idea is to take a debt and then make money with it. Same goes for companies as well, the most famous one was Apple taking billions in loans, when they had billions in cash.

Loans means you have debt, and you pay less taxes, but more importantly why not use someone else's money for something instead of yours. Nations will be in debt, and grow, and they will make more money, so pay the debt easier. If they take debt, but not grow, then they will just get worse and worse economically.

Credit that is not used properly will cause a bigger debt. If borrowed money is used well, it contributes to the development of both individuals and states. Many countries with economic problems could not use the resources they had well and became worse off by borrowing. It is possible to reverse this situation with a planned economic management, but it is not easy to provide this management.

Countries that use their income well do not borrow too much and manage to spread their resources to the people. Many countries have experienced both economic crises and good times. With a good policy, the economy can reach a good level.

Yes, debt if not managed properly will be in vain. Every developing country must have debt because the country is in debt for development, debt can be used to finance productive activities and of course for long-term investment. In addition, state debt is usually used to finance productive expenditures, to improve the quality of human resources through education, health, social protection, and of course to build infrastructure.

However, many countries that have debt are not managed properly, such as the amount of corruption and the government's inability to manage debt which can ultimately experience economic problems in the country. Therefore, the country needs to regulate debt so that it does not cause dangerous impacts in the future. As conveyed by OP, owing to the current generation and then the next generation paying it off so this can be said to be unproductive debt and this is very dangerous for a country.

This is very sarcastic, government borrowing money for a long-term without repaying them due to some kind of embezzlement of such funds by the so called government officials and thereby  abandoning the debt for the incoming government and continues from their until it reaches the next genarational leaders which is not suppose to be so, yes of course, what do you expect from leaders of countries that has nothing to offer, we have seen a situation where most countries borrow from a particular country for what they call infrastructural decelopment and still award the said contracts to the same country they borrowed the funds from, pay them with the borowed money and embezzle the remaining funds failing to service the debt for the next government to inherit the debt, this happen consistently because of lack of transparency among the so called political elites.
Yea, projects that will generate revenue or infrastructures that are meant to ease citizens livelihood, create employment in conclusion and to help in repaying back the borrowed funds are supose to be projects that government can borrow to finance aside this kind of projects, borrowing is useless.

The institutions and countries you mentioned are supposed to be happy because after all they are doing business, we don't expect them to turn down business that will benefit them, so the people that are to be blamed are the borrowers themselves, the borrowers has failed to do the needful by going into full industrialization that are capable of reshaping their countries economy thereby making them to be known in production capacity.

The essence of . modern economy is simply pointed at creating resolutions of how to make life easy for mankind. Modern entrepreneurship and technologies has crucial roles to play on this modernity.
Interestingly, borrowing money and paying back is and exchange of service which could even enable us set-up a goal of interest.
You can imagine loaning from the bank to start up a business?
Then you can imagine when you have business ideal but got not capital to start up but an opportunity to borrow could play that essential helping hand to reach your goal.

And of course, debt it debt which means we are expected to pay back money borrowed. So we either borrow that we can possibly payback in returns or better don't borrow what you can not afford to pay back.

From an individual perspective, you are right, and one shouldn't do that, but from an economic standpoint or to maintain a whole economy, it becomes necessary for countries to take loans. you are right that one should at least be able to repay the loan. Countries that don't have good economies in general will barely be able to repay the loans because they don't generate much revenue within their country, so they don't have a way to earn money and then return the loans they have taken.

In such cases, the loans keep piling up, governments keep changing, every new government takes more loans to continue their operations and make the country dive deeper into the ocean of loans because they don't care, they are in power today and won't be in power after a few years and the next group of people who gets the power will have to bear it. This continues for decades and centuries sometimes.

"a generation spends money"?
a generation is ~ 20years

in government the phrase should be:
'a 6month budget report spends money, a century of tax increases pays it back'

The situation at which this situations occurs needs to be studied and amended appropriately.So many countries will be left unguarded if they don't borrow or loan.Meanwhile,the damages from the previous government incompetence and mismanagement will make the successor confused and screwed-up with bunch of financial loads to pile up and update,which is quite unnecessary.

This often happens in currup countries where government take unnecessary loan for the sake of the economic development of the country, where as it was for their selfish interest. At last they end up mismanaging the funds or share it among themselves without considering the effect it will cause to the public. They end up stacking up loan for the future generation instead of development.

Though loan is good for the development of an economy, but it must be  controlled by those financial experts who can handle the affairs of the government effectively without mismanagement. A loan not properly used is equal to a waste loan.

Do you need to call someone a fool for expressing his own views about a topic? You should learn how to express your views without insults because you don't expect everyone to have the same view as you. Sometimes politicians fulfil their promises even in your country.

Do you have any proof that Trump will continue with Biden's policies on the Israel/Gaza/Lebanon conflict? All we can do is speculate and wait until he takes over. Don't also forget that the US is not just finding only the conflict in the Middle East. There is also the war between Russia and Ukraine.

Your position that Israel controls the IMF and the global economy is an overestimation of the financial strength of Israel. Without funds from allies, Israel will not be able to survive.

Bro funds are very important for every country to do progress in this time. And if you are trusting on Donald Trump statement then you are fool because Donald trump is political person and he will change his decision with time and nobody knows what will be future step of Donald trump but Trump is against Muslims and he is encouraging Israel to kill Phalasteen citizen and after this action USA economy will be strong and Trump will also provide weapons to Israel because Israel have full control of World Economy because they are owner of IMF and they have power to stop any country fund . Iran is attacking on Israel and Donald trump is ready to fight against Iran .USA economy will be strong if they entrap any country which has good resources but if they became successful then Dollar value will go down .