Anonymous
Anonymous asked in Business & FinancePersonal Finance · 2 months ago

If the government were to borrow more money and take on more debt to put towards COVID relief and families in need, what would the risks be?

5 Answers

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  • 2 months ago

    Same risk as buying $2000 toilets and $500 hammers.   Doesn't matter what they spend money on, it's still spent.

  • Maxi
    Lv 7
    2 months ago

    Same as if a person borrowed too much money and were not earning enough to keep up with the payments, they would end up bankrupt and lose everything.....a country that borrows and borrows and they can't earn enough to pay the money could end up bankrupt, certainly they will be in long term debt to the other countries that lent them money who can start demanding changes to their laws/rules and it all has a domino affect so if one country is bankrupt it does affect all those countries who have businesses, interest in, trade with that country................... which is why the EU poured money into Greece recently to stop it going bankrupt and why the UK flooded money into Ireland a few years ago for exactly the same reason

  • Anonymous
    2 months ago

    More important is the risk of not doing so - the economy crashing on both big scale and small scale - and the likelihood killing off so many citizens, there won't be enough workers to make up the deficit in the future production, earnings, and taxes. 

  • 2 months ago

    a lowering of the work ethic / a sense of entitlement, inflation, and more national debt passed on to the future (meaning someday the U S might have to pay a higher interest rate to borrow money - further increasing the national debt).

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  • Anonymous
    2 months ago

    They've been doing it. Is this homework help from yet another cheater?

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