It is true that a certain level of public spending is necessary to perform essential government policies, but what if tax revenue is not able to cover those necessary government expenditures?
The obvious answer here is for the government to take on debt. Is this a bad thing? Absolutely not.
Public debt, if used properly and managed well, can be a fundamental tool to build an economy and a country. All the government needs to do is ensure their spending is properly targeted and that debt grows more slowly than tax revenue in the long-run.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.