Is public debt a good thing?

Question:

Is public debt a good thing?

Public Debt:

Public debt is the part of the total debt that represents total outstanding debt; generally considered bonds and other securities of a central bank in an economy. It is also called government debt.

Answer and Explanation:

Public debt is a good thing or bad thing it all depends on circumstances, but generally, it considers as a good debt compares to other debt. Public debt is good for arranging extra funds in the short run to invest in the economy. All debt is considered as good if they are investing to build infrastructure and help the economy to grow.

The public debt is safer than foreign direct investment (FDI) and helps foreigners to safely invest in the host country by buying bonds issued by the government. This debt can help the government to improve the standard of living in the countries.


Learn more about this topic:

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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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