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“The UK should be seen in the same category of countries as Greece and Spain, who are facing severe debt problems, a leading economist has said.”
Like any other countries, UK has borrowed tons of money to protect its economy during the recession. This has resulted in tremendous amounts of debts that UK will eventually have to pay in the future.
It is not bad to borrow money in order to recover economy, but it follows with some consequences if it is not properly planned out how it is going to repay its debt. It is a common sense, however, it is an essential rule.
Even if its economy recovers, tremendous amounts of accumulated debts would be another hindrance to economic prosperity. It could stimulate another global economic crisis.
Sometimes, it is appropriate for countries to borrow money to recover its economy. It could have an economic effect that covers the price of the debt. However, if countries borrow too much money, it could be a critical problem. Therefore, countries should look between the line where they can approximate the effect by borrowing and money and lessening the debt as small as possible.