Great Britain, the Kingdom of Prussia, Austria, France, and Sweden were all heavily taxed as a result of the Seven Years’ War (1756-1763). This financial burden that Britain tried to alleviate through increasing taxes in the Thirteen Colonies led to the American Revolution, which was sparked by the costs of a protracted war on three

This year, the public’s debt to the federal government has surpassed 100 percent of GDP, up from 35 percent in 2007. If the latest CBO long-term budget projections, which exclude the recently passed American Rescue Plan Act and other new spending initiatives currently being debated, are to be believed, it will reach 202 percent of

One of the most pressing concerns in public affairs today is the size of the nation’s debt. Debt may be a powerful tool for long-term growth and prosperity if used correctly. In order to properly evaluate the national debt, it is necessary to compare the interest expense paid by the government to other governmental expenses

Refinancing a country’s existing debt becomes more expensive when interest rates climb. Government services would eventually take a backseat to debt payments in the long run. Similar to Europe’s sovereign debt crisis, a situation like this might lead to a financial collapse. In the long run, investors are forced to raise interest rates because of

Japan will have the biggest public debt in the industrialized world by 2021, with an anticipated total of US$13.11 trillion ($1.4 quadrillion yen), or 266 percent of GDP. The Bank of Japan holds 45 percent of this debt. In 1991, Japan’s asset price bubble burst, causing a long period of economic stagnation known as the

Due to the government’s economic policies, Greece is in the midst of a debt crisis because of excessive expenditure. When Greece joined the European Union in the early 1980s, its financial status was sound. However, it worsened significantly during the next 30 years. From 2001 to 2008, the economy grew at a rapid pace, but

Home mortgages, vehicle loans, school loans, and credit card debt are the four main sources of American debt. A little over $9 trillion of the $14 trillion in debt we cited can be attributed to mortgages. Low interest rates on car loans have contributed another $1.3 trillion to the total. A record $1.48 trillion in

There are several pros and downsides to both debt and equity financing that we discussed in our last blog. Today, we’ll look at whether or not debt is less expensive than equity and why. A lot of people ask this type of question. Debt vs. equity is typically used to compare the cost of obtaining

Debt and equity financing were compared in our last blog post. Today, we’re looking into why (and whether) debt is less expensive than equity.. A lot of people ask this type of question. Debt vs. equity is often used to compare the cost of financing; the additional capital is typically needed to fund expansion or