Is National Debt a Cause of Concern or Not? (Essay Sample)

Is national debt a cause of concern?
National debt is part of accumulated public finance referring to the money borrowed by the government over a period of time. The national debt can be a serious concern in some cases while in some other cases, it should not be such a big problem.
To begin with, a large national debt means that the government has to rely on borrowing that may prove to be troublesome if lenders have strict measures that will make it hard for a country to borrow. There is also a higher chance of a sovereign default or debt crisis. In addition, it risks a credit downgrade which results in a reduction in credit-worthiness of a country and may push interest-rates up, enlarging the burden.
Furthermore, the larger the debt is, the larger the interest payments and the cost of servicing the debt will be. This creates a deficit in the financial accounts of the balance of payments. On one hand, the deficit causes the currency to deteriorate which raises the cost of debt further. On the other hand, the deficit also needs funding and this means increased borrowing that again is likely to enlarge debt, creating a loop hole.
Moreover, a large public debt is likely to lead in a reduction in government spending and in an increase in taxation. This