National Debt, it feels so good but it hurts so bad


The reason why the national debt hurts the United States or any kind of
country is because of many reasons. These vary from the ability to
borrow to paying on the interest of the debt. Everyone knows that when
one is a debtor then it also puts one into a position of weakness where the
lenders can call in all the debt or call the shots when it comes to the
debt. The interest rate makes it so that the debtor has to keep paying on
the debt and the new interest charges start to be added onto the principal
debt. So a person may pay 400 dollars into their principal debt however
once the compound interests kicks in there could be 200 dollars of new
charges which means that only 200 dollar when into the principle. If
this keeps on going the debtor may never pay of their debt. Which is the
case for many persons. This isn’t just the case for people it is also
the case for governments. In the end the individuals of the country are
responsible for the debt and this in many cases end up leading the
country to go to war with their debtors or go after their leaders. Just see the French Revolution
or the American Revolution.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s