- Oskar Goodwille
- United Kingdom
Student, Sevenoaks School
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Why can't countries function without going into debt?
After reading various articles about Japan's incredibly high living standard I couldn't help but ask how they can afford to do so much for their citizens (i think it's admirable but is it not being unrealistic? I then looked at Scandinavian countries such as sweden who have comparable living standards but are in far less debt than Japan. The question i am asking is not concerned towards how effecieint a countries economy or surplus' they aim for. but rather why is it that a country whether developed or not has to have continuous debt? e.g. the US, its incredibly expensive, and can lead to great volatility in such situations as the US Shutdown. So again why is that a country has to go into, and stay in debt? any economist should realise the profit in the long run of not having to pay interest.
p.s. i understand the benefit of debt, just simply not why countries can't pay it off instead of going deeper into debt.