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Public debt means that your town, state or country is spending more money each year than it is 'earning' (i.e. coming in form taxes).
To do this your town, state or country has to borrow money and then pay interest on these borrowings in just the same way you would have to it you borrowed money yourself.
If steps are not taken to reduce the overspending and pay back the money borrowed the sum required for interest gets larger and larger leaving less money for your town, state or country to spend on roads, schooling, security etc. It becomes a vicious, unsustainable cycle which eventually means that your town, state or country can no longer pay back the debt or deliver public services - the town, state or country goes bankrupt. At this point your country's currency becomes worthless and hyper inflation sets in and business and commerce stops. Further the people that have loaned you the money for the debt now come in and take charge of your town, state or country and control it ans squeeze it to get their money back no matter how much this hurts the people of your town, state or country.
You do not want to go there ! public debt is BAD.
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∙ 13y ago
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What is the deficit always than the public debt?
The deficit is always smaller than the public debt.
How is bad debt different from good debt?
Good debt is an investment helps to build credit. Bad debt is the amount that the entity has lost.
How big is the Canadian public debt?
The Canadian public debt, which is also called the "national debt" or the "public debt" in Canada. The cost of the debt is constantly changing. You can find up to date information from a Canadian based website called Debtclock (the website will end in a Canadian domain of .ca)
What steps would be recommended to lower public debt to manageable level?
If for example your country has high public debt-GDP ratio. What steps would you recommend to lower public debt to manageable level?
Bad debt on a balance sheet?
No, bad debt is an expense and is reflected on the P&L Statement.
What is the real burden of an increase in the public debt?
If the government runs into a deficit whatever the burden is will be passed on to the next generation. Public debt increases when the economy is in bad shape.
Is Public debt or External debt bigger?
The Public Debt is debt that is owed by the Government of the United States. The External Debt is that is owed to foreign countries. The current Public Debt is $16,738,541,240,281.19 that over 16 Trillion dollars. The external debt is approximately $15,940,978 that is a lot less than the public debt.
What is the public debt?
The public debt is the debt that the United States government owes to other countries.
Current trends of public debt in India?
trends of public debt in india
What are the Advantages and disadvantages of public debt?
The biggest disadvantage of public debt is the fear of it leading to excessive inflation. The advantage of public debt is the leveraging of public assets to provide services.
Is having debt good or bad?
To be in debt is usually considered bad.
What is the deficit always than the public debt?
The deficit is always smaller than the public debt.
When was Ottoman Public Debt Administration created?
Ottoman Public Debt Administration was created in 1881.
How is bad debt different from good debt?
Good debt is an investment helps to build credit. Bad debt is the amount that the entity has lost.
Do you credit allowance for bad debt and debit bad debt expense?
you smell
Non business bad debt personal loan?
It's a personal bad debt
How do you contact the Bureau of public debt?
Formed in 1940 The Bureau of the Public Debt is partially setup to track and report public debt. The bureau of the Public Debt borrows money that is needed to run the federal government and to account for the resulting debt, basically paying it back.The Bureau of the Public Debt is part of the U.S. Department of the Treasury.The link is added below to get to the government website which interestingly enough has the figures for the U.S. debt for which now the numbers are in double digit trillions.
