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Is there a potential problem if government continually finance goods and services by borrowing money?
Wiki User
∙ 13y ago
Ye, eventually debts must be repayed with interest.
Dixie Langosh
Wiki User
∙ 13y agoYes. It puts the country in debt. If a country winds up "borrowing" money, they would wind up owing more money than they can produce.
That's the thing with borrowing, you have to pay it back, and usually with interest.
Wiki User
∙ 10y agoYe, eventually debts must be repayed with interest.
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Is there a potential problem if government continually finance goods and service with borrowed money?
If the government is not making profit with these goods and services, which they're most likely not, they will not have the sufficient income to pay back the loan. If you have a $100 electric bill, so you take out a loan to pay for your electricity, now you owe the bank (or loan agency) $100. You're not paying the bill; just changing who you owe it to. Not to mention, the loan agency will charge interest, so now you owe $150 for a $100 electric bill. The only difference is that the government does this on a larger scale, and it affects all of us.
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Does Japan have a government?
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Centrelink is an Australian website set up by the Government to help citizens to update and view the information the Government keeps on them. It is now part of the department of Human Services.
