Is there a potential problem if governments continually finance goods and services by borrowing money? Yes, eventually their debts must be repaid with interest. Yes, it is unconstitutional for governments to borrow money. No, governments can accumulate debts without limit. No, it is always easier to pay off the debts later.

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River Graves

22 February, 04:18

Is there a potential problem if governments continually finance goods and services by borrowing money? Yes, eventually their debts must be repaid with interest. Yes, it is unconstitutional for governments to borrow money. No, governments can accumulate debts without limit. No, it is always easier to pay off the debts later.

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Rabbit · Answer 1

If governments continually finance goods and services by borrowing money, then "Yes, eventually their debts must be repaid with interest. " However it is common and oftentimes necessary for a government to be in a certain amount of debt.