I was reading an article and wondered what are the long-term implications of rising national debt?
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Such a good question, national debt feels like one of those things that’s always in the background, but nobody really explains what it means long-term.
At a basic level, if debt keeps rising, it could mean a chunk of the government's money just goes to paying interest instead of funding stuff we actually care about (like healthcare, education, etc.). It can also limit how flexible the government can be in a future crisis—like, there's only so much borrowing you can do before people start to worry.
There's also the risk of inflation if too much debt is just printed into existence, and sometimes it can even spook investors, which is what happened in countries like Greece.
That said, not ALL debt is bad, it really depends on what it’s being used for. Borrowing to invest in infrastructure or the economy is way different than borrowing just to plug holes.