I used to think this way as a child, but now I understand clearly that borrowing can also be a government economic strategy. That is if used well. I also thought of that when I was zero knowledge about how economy works. I thought that borrowing is a bad thing but that's a way to at least fund some good infrastructure and programs that the government is about to do. But not all borrowing is good especially if the country is already in debt. And that's why those countries that have less to no debt(if there is) are having a good signs that they're healthy economically and they're stable compared to the ones that have been borrowing because they have to give favor to the lender in any way they can. Yea,I already made it clear in my post that borrowing can be useful if used well.  Most countries that are swimming in debts and huge economic instability never had clear plans for the money they borrowed. The rule about borrowing is that the money borrowed should be able to yield returns to pay off the capital and the interest within the stipulated period agreed by both the borrower and the lender. What this means is that, governments should only borrow for productive projects, not borrowing to service an existing debt or finance a recurrent expenditure like most governments do. Bad use of the borrowing privilege makes borrowing bad, just the same way excessive printing of money is bad.
I used to think this way as a child, but now I understand clearly that borrowing can also be a government economic strategy. That is if used well. I also thought of that when I was zero knowledge about how economy works. I thought that borrowing is a bad thing but that's a way to at least fund some good infrastructure and programs that the government is about to do. But not all borrowing is good especially if the country is already in debt. And that's why those countries that have less to no debt(if there is) are having a good signs that they're healthy economically and they're stable compared to the ones that have been borrowing because they have to give favor to the lender in any way they can. Yea,I already made it clear in my post that borrowing can be useful if used well.  Most countries that are swimming in debts and huge economic instability never had clear plans for the money they borrowed. The rule about borrowing is that the money borrowed should be able to yield returns to pay off the capital and the interest within the stipulated period agreed by both the borrower and the lender. What this means is that, governments should only borrow for productive projects, not borrowing to service an existing debt or finance a recurrent expenditure like most governments do. Bad use of the borrowing privilege makes borrowing bad, just the same way excessive printing of money is bad.

I used to think this way as a child, but now I understand clearly that borrowing can also be a government economic strategy. That is if used well. I also thought of that when I was zero knowledge about how economy works. I thought that borrowing is a bad thing but that's a way to at least fund some good infrastructure and programs that the government is about to do. But not all borrowing is good especially if the country is already in debt. And that's why those countries that have less to no debt(if there is) are having a good signs that they're healthy economically and they're stable compared to the ones that have been borrowing because they have to give favor to the lender in any way they can. Yea,I already made it clear in my post that borrowing can be useful if used well.  Most countries that are swimming in debts and huge economic instability never had clear plans for the money they borrowed. The rule about borrowing is that the money borrowed should be able to yield returns to pay off the capital and the interest within the stipulated period agreed by both the borrower and the lender. What this means is that, governments should only borrow for productive projects, not borrowing to service an existing debt or finance a recurrent expenditure like most governments do. Bad use of the borrowing privilege makes borrowing bad, just the same way excessive printing of money is bad.

I used to think this way as a child, but now I understand clearly that borrowing can also be a government economic strategy. That is if used well. I also thought of that when I was zero knowledge about how economy works. I thought that borrowing is a bad thing but that's a way to at least fund some good infrastructure and programs that the government is about to do. But not all borrowing is good especially if the country is already in debt. And that's why those countries that have less to no debt(if there is) are having a good signs that they're healthy economically and they're stable compared to the ones that have been borrowing because they have to give favor to the lender in any way they can. Yea,I already made it clear in my post that borrowing can be useful if used well.  Most countries that are swimming in debts and huge economic instability never had clear plans for the money they borrowed. The rule about borrowing is that the money borrowed should be able to yield returns to pay off the capital and the interest within the stipulated period agreed by both the borrower and the lender. What this means is that, governments should only borrow for productive projects, not borrowing to service an existing debt or finance a recurrent expenditure like most governments do. Bad use of the borrowing privilege makes borrowing bad, just the same way excessive printing of money is bad.