Numerous countries globally possess substantial foreign debt and are endeavoring to manage their economies through it. According to a recent report from World of Statistics shared on Twitter, titled "Countries with the Highest Debt in 2023," the United States leads with a debt totaling $33,229 (Rs 27,73,858). Following the USA are China with $14,692 (Rs 12,26,444), Japan with $10,797 (Rs 9,01,301), and the United Kingdom with $3,469 (Rs 2,89,581).
National debt is a complex and often abstract concept that can seem removed from the daily lives of ordinary citizens. However, the reality is that high levels of national debt can have profound and far-reaching effects on social services, taxes, employment rates, and public welfare.
This article explores how national debts of the United States, China, Japan, and the United Kingdom influence the everyday lives of their citizens.
One of the most direct ways national debt impacts citizens is through its effect on social services. When a country has a high level of debt, it often needs to allocate a significant portion of its budget to debt repayment and interest. This can lead to reduced funding for essential services such as healthcare, education, and public safety. For example, in the United States, the growing national debt has led to concerns about the sustainability of programs like Social Security and Medicare. Similarly, in Japan, which has one of the highest debt-to-GDP ratios in the world, the government has faced challenges in maintaining its extensive social welfare programs for an aging population.
High national debt often leads to increased taxation as governments seek to balance their budgets and reduce their debt burdens. This can manifest in higher income taxes, sales taxes, and other forms of taxation that directly affect citizens' disposable income. In the United Kingdom, for instance, austerity measures introduced to tackle the national debt have included tax hikes and cuts to public spending. These measures have placed additional financial strain on households, particularly those already struggling to make ends meet. In China, the government has also implemented tax reforms to increase revenue, affecting both individuals and businesses.
The relationship between national debt and employment rates is complex. On one hand, government spending funded by debt can stimulate economic activity and create jobs. On the other hand, excessive debt can lead to economic instability, reduced investor confidence, and austerity measures that can negatively impact employment. In countries like the United States, periods of high national debt have sometimes coincided with economic recessions and higher unemployment rates. In contrast, China has managed to maintain relatively low unemployment rates despite its significant national debt, largely due to its strong economic growth and government interventions in the labor market.
Public welfare, which encompasses the general well-being and quality of life of citizens, can be significantly affected by national debt. High debt levels can lead to cuts in public services and social programs, increased taxes, and economic uncertainty, all of which can diminish the quality of life. In Japan, the burden of debt repayment has led to reduced government spending on infrastructure and public services, affecting the quality of education, healthcare, and transportation. In the United Kingdom, austerity measures have led to cuts in welfare benefits and public services, exacerbating poverty and social inequality.
