Explain this statement: "The national debt is like taking money out of your left pocket and putting it into your right pocket."

Social Studies

1 answer:

MissTica3 years ago

3 0

Answer:

The statement states that taxes paid by the population to reduce the national debt will be converted into benefits for the population itself. So, in the end, the population is not spending money, just putting it in different places.

Explanation:

National debt is the term that refers to the debts that the government of a country has to finance works and improvements in the country that cannot be paid with the taxes paid alone. However, this debt will be paid by the collection of taxes, which may become higher, so that these works can be carried out. In a simplified way, governments understand that the expenses of the national debt must be paid by the generations of citizens who will benefit from these expenses, as this allows the population not to lose money, but to exchange it for benefits, that is, the national debt reallocates the population's money in works and actions that will improve the lives of this population, for this reason, governments claim that the national debt is like taking money out of the left pocket and putting it in the right pocket.

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