The problem with our high debt is that too many people feel that countries cannot go bankrupt. This is not true. There are far too many people who do not know history. As I remember my history, it is far easier to mention who has not gone bankrupt. There is one Nordic country and basically the Anglo-Saxon countries that have not gone bankrupt (or defaulted on government bonds).
The Anglo-Saxon countries are Canada, US, Australia and New Zealand. New Zealand almost went bankrupt in 1979, but was saved by the incoming Labour party. England last defaulted on government bonds in the 12th century. All other countries have defaulted on government bonds.
If debt levels get too high, there will not be enough money to fund social programs. (For example, anything I have read on Greece and their government health coverage is that is there in theory, but not much in fact.) You cannot just hit the austerity button either if you are in trouble over debt. Greece is an example also of this as austerity has basically killed their economy.
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