Increasing national debt can lead to the crowding out of funds allocated to economic growth and social programs, as a larger portion of the budget has to be directed towards interest payments on the debt, leaving fewer resources available for investments and social welfare initiatives.
Increasing national debt could potentially result in higher interest payments, which could limit funds available for economic growth and limit the amount of money that can be allocated to social programs.
Increasing national debt can divert funds away from economic growth and social programs, as the government may need to allocate a larger portion of its budget towards debt servicing, reducing resources available for investment in these areas.
