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Why does a government have to pay interest on the national debt?
Wiki User
∙ 11y ago
Because that money is on loan from someone. It could be you through your 401k, or another nation. Most people and countries do not wish to loan money to anyone free of any cost. Would you be willing to loan trillions for no interest?
Wiki User
∙ 11y ago
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What are three ways in which the Constitution strengthened the national government?
It created a national bank, proposed the power to enforce tariffs and taxes to pay debt, and also that the entire national debt plus interest was to be paid in full
Where do fire departments get money?
From government, so our taxes.Yes from Government, But not the taxes. Taxes are not used for infrastructure in the least amount. It is being used to pay on the INTEREST of the national debt alone.
What was Hamiltons plan to pay off national debt?
Hamilton's plan to pay off the national debt had three parts. The first was to pay off all war debt, next was to raise government revenue and last to create a national bank.
Where did Hamilton expect that the revenue to pay the interest on the national debt would come from?
Hamilton expected that the revenue to pay the interest on the national debt would come from excise taxes and customs duties. He did not want the revenue to come from income tax.
How did the national assembly plan to pay off government debt?
They would give them whiskey.
What did Hamilton believe in regards to the debt the states accumulated from fighting in the revolutionary war?
The national government had the obligation to pay the debt.
What did Hamilton believe in regards to the debt the states accumulated from fighting the Revolutionary War?
The national government had the obligation to pay the debt.
What did Hamilton believe in regards to the debt the states accumulated from fighting revolutionary war?
The national government had the obligation to pay the debt.
Was it because of money gained from sale of Western lands the government was able pay the national debt?
True
How did the first five presidents deal with national debt and were they successful?
Washington and Adams had to pay interest on the large Revolutionary War debt and the debt rose by about 15% in 12 years. Jefferson reduced it by about 30% due in part to the selling of government land. Madison had to pay for the War of 1812 and the debt went up to new levels. Monroe paid back about 30% of it in his 8 years.
What is funding at par?
means the federal government would pay off its debt at face value, plus accumulated interest.
Do You will have to pay interest on credit card debt as long as you pay the minimum amount due on time each month.?
Yes, you pay interest on credit card debt if you only pay the minimum payment. If you pay the entire balance, then you pay no further interest.
