Russia is a country that does not have public debt. Photo/Reuters
MOSCOW – Most Western countries are already used to issuing debt to finance development. But that’s not a necessity.
Public debt is one of the big problems of our time. The current debt burden is unprecedented. And what’s worse, these funds are accumulated to finance short-term spending. We have nothing to show.
In the past, the only reason a country had large amounts of debt was because of events occurring abroad, such as world wars. And the desire to defend its territory makes the government willing to spend money carelessly.
However, the debt the government has taken on in recent decades has largely been used to finance non-essential spending. In other words, instead of living within our means, we choose to continue being in debt, not worrying about how the debt will be paid back in the future.
Society has shown a high level of ignorance and selfishness. And politicians have taken advantage of this, making promises to the public with the sole aim of getting themselves elected to office.
The impact is that almost all large countries in the world are in a very vulnerable situation. Many officials try to justify this by arguing that high public debt is the price to pay for having a developed economy. But that couldn’t be further from the truth.
Rich countries are not rich because they are heavily indebted. Debt only helps in the short term. But in the long term, debt causes many problems. The reality is that rich countries remain rich even though their public debt is high.
10 Countries Without Public Debt, One of Which is Still at War
1. Swiss
Photo/Reuters
2024-02-08 15:22:22
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