Understanding the National Debt and Its Effects on Individuals #11

GM Trendy Hiverzzz, If you avoid news related to national debt when you hear it, then you are making a significant mistake because it is directly related to you, as you will ultimately have to pay for it.

You may think, Why should we worry, because politicians and economists are there to worry, but this is wrong. When you know this thing, then you can implement things in your personal finances to overcome difficulties that may come in the future.

This is also helpful to decide your next vote in elections, career planning, and investment.

National debt depends on the government's actions. If the government owes the money to creditors, then it is called national debt.

You can see some examples, such as some poor or developing countries taking loans from China, Saudi Arabia, and America.

When this happens when the government spends more than it collects, and here I am talking about tax money. So basically, there is only one solution left, which is to borrow.

Another way is looting lol yes here I am talking about taxes. The government can increase taxes to pay its debts.

If you are thinking that you are not paying tax directly because your income is low, then hold on, because there is not just one type of tax, but there are more.

For example, if you are buying something, then it is not tax-free. You can give it in the form of inflation. When inflation rises then it is not just about that supply and demand thing that is always most of the time; it is taxes that increase inflation.

Excessive borrowing may increase inflation like hell. At that time, people save themselves from spending money more outside, and this is obvious. When you have to pay more then you avoid spending money, and everyone does the same.

Balancing everything is key, and it depends on the government. It affects individuals, which is why it is important for us.

Looking for access to more information like this, then there is a follow button on my Hive blog. Salam namaste, take care.

"Dream is not that which you see while sleeping, it is something that does not let you sleep." - Avul Pakir Jainulabdeen Abdul Kalam 💪

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