With high interest rates, inflation, and taxation today, impacts from debt resonate within the individual generations.Take from one of the biggest economy in the world, the US interest payments on federal debt are now at an all-time high and siphon budgets away from needed services, like healthcare and education that benefit all people alive today-not just future taxpayers.
Meanwhile, debt reliance can become more and more issue-related to burdening future taxpayers, but even hinder economic development-as high levels move money away from investment that may produce returns over time. Some economists indicate that this may be reduced in the future through policy choices-make targeted spending cuts or reforms. Debt is indeed a shared responsibility, but that does not mean only future generations bear the load; it's an issue for the present too, since the interest payments and need for budget adjustments are being felt across age groups.
Topic: A generation spends money, a lifetime pays it back. - page 3. (Read 441 times)
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
I don't know whether modern economics has anything to do with people borrowing money and mismanaging it, leaving the burden of repayments to future generations. And leaders of countries that depends on borrowing and diverting most of the funds into their private pockets, leaving incoming administrations with the responsibilities of repaying. What happens is that the incoming administration will also borrow and divert most of the monies, while the dept continues to pile up. People and governments are supposed to borrow money to fund projects that will generate income, and from the profits that they get from the project, they'll be servicing the dept. I guess that the world bank, IMF and industrialized countries like China, are happy to dish loans to most underdeveloped countries, in the end they'll own the countries indirectly. It's very convenient for people in leadership positions to take loans that'll run for a long term beyond their administration because it won't be their responsibility to repay. They're free to embezzle the funds without any remorse and when a new administration comes to power the first thing they'll tell the electorates is that they've inherited too many depts.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
Let me give a a typical example. My country's government just borrowed money from the World Bank which is running in billions of dollars.They say the loan is to stabilize the economy blah blah blah but honestly we don't need those loans. The first repayment is in 10 years way after the current administration has left office. Obviously I have no faith in the because they are going to divert it into personal coffers and their will be no penalty for it. We don't need these loans. Even the loans are a trap by the World Bank to keep poor countries poor. The next generation is going to spend their lifetime paying back loans. Here it is - https://www.google.com/amp/s/punchng.com/tinubu-govt-borrowed-6-45bn-from-wbank-report/%3famp
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
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