National debt is caused by a government not having enough tax revenue to match its spending. This debt is the national debt. The national debt results from a government's spending exceeding that government's tax revenue. What fundamentally causes this is political reluctance to raise taxes or cut spending, because either measure would be politically unpopular. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay In the late 1980s, Tanzania suffered from a heavy external debt burden. Tanzania's external debt, which at the end of 1986 amounted to 3.9 billion US dollars and by 1992 exceeded 6 billion. This was due to reckless borrowing in the 1970s, poor economic policies, inaccurate assumptions about economic growth, the collapse of commodity prices, a series of droughts and a severe economic recession. This meant that their country had little means to repay these debts due to their economic instability. This creates many problems for the country, in particular. Some problems that result from national debt are reduced ability to respond to problems, as governments frequently borrow money to deal with unforeseen situations, such as wars, budget emergencies, and disasters. events. This is quite simple to do when demand is low. Either way, with a large and growing debt, the government has fewer choices. For example, during the financial crisis some time ago, when the debt represented only 40% of GDP, legislators could react by increasing spending and reducing charges in order to revive the economy. In any case, the debt subsequently increased until it almost doubled its share of GDP. If the debt were to remain at the current level of GDP or increase further, the government would believe that it would be progressively difficult to adopt comparable arrangements of the same level thereafter, thus creating distrust in the country. Therefore, future recessions and financial emergencies could have greater negative impacts on the economy and on the prosperity of individuals. Additionally, decreased financial adaptability and increased reliance on foreign investors, accompanied by high and growing debt, could weaken the U.S. government on the global stage. Given the potentially catastrophic impacts that other disasters could have in the future, maintaining the United States' ability to respond quickly would be essential. But as debt continues to rise, it will become more difficult to respond to these kinds of things in the future. In 2009, Greece's spending deficit exceeded 15 percent of its total national output. The collapse of the Greek bond market would weaken Greece's ability to finance further debt repayments. The EU and the International Monetary Fund provided 240 billion euros in emergency funds in exchange for reducing the government's budget deficits through spending cuts, tax increases or a combination of both. The loans only gave Greece enough money to pay interest on its existing debt and keep the banks capitalized. The EU had no choice but to support its members by financing a rescue plan. Otherwise, it would face the consequences of Greece leaving the euro zone or defaulting on payments. To a large extent, the reason for..