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Government borrowing can be a concern when it leads to unsustainable debt levels, potentially hindering economic growth and increasing the risk of default. However, borrowing can be justified if it finances productive investments that stimulate the economy. The key is to maintain a balance, ensuring that debt remains manageable relative to GDP and that borrowing serves long-term economic goals rather than merely funding current expenditures. Ultimately, the implications of government borrowing depend on the context, including interest rates, economic conditions, and the purpose of the debt.

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2w ago

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