Quote from: Spaceman1000$ on November 09, 2024, 12:58:05 PM

Quote from: UTON Blockchain on November 08, 2024, 08:56:35 AM

The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.

This is not the true concept of borrowing even in this modern era, most
Government borrow for key infrastructural development purposes with strategic repayment plans put in place, citizens on one hand are bound to hold government accountable, the parliament is there to help checkmate the executive. I don't have any issue with the concept of borrowing, but the big question is, what are you borrowing for?, are you borrowing for consumption or your borrowing for production.

To some extent, he is not wrong. Theoretically, you are right. That's what true economy should do if you are borrowing for production, there will be more economical growth to pay back in the next generations without putting burdens and making the economy becomes international debt zone. However, we know that politicians are very reckless when it comes to spending, they will rather borrow money for consumption without thinking twice.

Look at the concept of Nigeria borrowing system, they depend on Crude oil, 10 years production of crude oil has already been used to borrow loans to pay back oil that hasn't even be extracted from the well. Now, the new government is extracting oil but some huge percentage has already been signed as loan, part of the money are used to service debts and the country can't do anything. Some of the money that were borrowed weren't used for what it was intended, they were stolen and looted, this is not production nor consumption but corruption.