The global debt problem

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Global debt

Debt is a fascinating concept as governments need money in order to run countries. It’s an obvious fact that running a country costs a lot of money

Governments obtain money from the people they govern. Governments are not profitable entities, nor do they own profitable businesses or any other ways of earning money. This money is assigned as taxes, and it is the obligation of the citizen of a country to pay their taxes in order to provide their government with enough funds to run the country.

Essentially, the government uses these funds (taxes) to run the country. They should spend all tax money on the country, but governments often surpass the amount of these funds. Government expenditure is similar to the spending of people because it usually exceeds their financial means. Governments printed more money and referred to this money as debt to justify the spending of more money. They use this money to pay for everything that taxes would have paid for. This money though is debt.

For More Detail : The global debt problem

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We will have to understand the Global Debts in our analysis.

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