Is there a potential problem if governments continually finance goods and services with borrowed money?
a) yes, because it is unconstitutional for governments to borrow money.
b) yes, because eventually the debt must be repaid with interest.
c) no, because governments can accumulate debt without limit.
d) no, because it is always easier to pay off the debt later.

Is there a potential problem when governments continually borrow?

b) Yes, eventually their debts must be repaid with interest.

A classic example in history was the experience of the French government under the Bourbon dynasty, which ultimately gave way to the French Revolution.

The French monarchy was the envy of Europe, and the Palace of Versailles maintained the most glorious lifestyle you could imagine. The royals and aristocracy lived large – too large. The government had accumulated 4 billion livres worth of debt by 1789. 1 livre in their monetary terms then = approx. $4 in our monetary terms in the US today, so that’s a $16 billion national debt. 40% of the government’s budget was going to pay interest on debts. And it kept getting worse. In 1786, for example, government income was 357 million livres and expenses were 555 million. So that's about 200 million added to the national debt in just one year. The debts kept piling on, and it was reaching a point when lenders were starting to say no to any further loans. The government had reached a position where it could not go forward without levying even more oppressive tax burdens on the people, and the people weren’t willing to pay.

It should be mentioned that, along with the regular lavish costs of the royalty and upper class lifestyles (all paid by the lower classes), a big part of the government’s debt had come from wars. There was the 7 Years War fought in Europe (1756-63) – known as the French and Indian War over here in the colonies. Losing that conflict didn’t sit well with France. And so when the colonial Americans broke out in revolution against the British monarchy, France devoted enormous financial aid (as well as officer support) to the Americans. The cost to France for supporting America’s revolution added up to 1 billion livres (about 4 billion in today’s dollars). This is part of what put France’s debt problem over the edge. When bankers and lenders would no longer give further loans to the French government, the series of events that led to the French Revolution fell into place.

no

explanation:

not everyone in america is free. it is has always been a unequal society. and yet people come in swarms, in search of better lives. some are brought as children, unaware, unknowing. some arrive and just don’t leave. they build lives, pay taxes, raise families. some enter illegally, fleeing persecution in their home country.

there are many reasons why human beings are so attracted to america, despite its history of bitterness towards immigrants.

there are almost two million immigrants brought to the us when they were children. president donald trump and his collaborators are determined to rid the us of as many undocumented immigrants as they can, and stop others from coming because none of their ancestors were immigrants.

america has so many things and yet it lacks the one thing that humanity needs to fully thrive. and so this country will not be at peace in itself until it resolves the pain at the heart of slavery, attacking immigrants, and crumble the rights of those with less power.

the image shown is not a reliable source. it is not a photograph taken of the event, and it is not a painting created by someone who witnessed the event. the image can be considered yellow journalism because it is sensational and exaggerated. the explosion did not likely cause bodies to fly in the air or create a large fireball, as shown here. the image was created to make the american public angry about the explosion, not to show what actually happened.

the painting is not reliable.

the painting is exaggerated.

the painting is inaccurate.

the painting was created to make the public angry, not to show what really happened.