National Debt Is Not Always A Bad Thing

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When I first thought of national debt I thought about only the cons and disadvantages of having it. I never gave thought as to what the advantages of having it may be. National debt is the amount of money the federal government owes to lenders outside of itself. "When the Treasury borrows funds, it issues Treasury bonds; these are IOUs of the federal government. In other words, the national debt is a stock of IOUs created by annual deficit flows." (Schiller 261) With the help of research and my economics class, I have learned that having national debt is not always a bad thing. For example, the financial crisis of 2008-2009 and the effects it had on the economy and people was horrible. However, I learned that if it weren 't for the increase in government borrowing by bailing out banks and financial markets, the banks and financial markets could have froze and that would have thrown us into a Great Depression type run on banks. If the government uses its debt the right way, then it will allow the government to do things that it couldn 't really do before. I believe investing that debt instead of spending it would be the wiser choice. The government sometimes spends money so that consumers will have money but they just end up spending it. This is just a way for the government to stimulate spending at that moment. That 's just a short term benefit. Therefore, by investing its debt in things such as medical and technological research and education will create a long term
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