Mrs. MJ/Mrs. Hull
English 10H, P2
3 April 2012
National Debt in the Czech Republic
National debt can have a tremendous effect on society. There are a plethora of reasons causing national debt. Some include the government spending more money than they earn in revenue and some can be due to tax cuts. The people of the Czech Republic are suffering from national debt. They are suffering because national debt causes higher taxes and higher interest rates that many people might not be able to afford (How the National Debt). “As shown by the Czech Republic’s economy in 2009, national debt played an important role in the economy. According to the Finance Minister Eduard Janota, the government is to be blamed for the rising deficit since the government is incapable of raising significant revenues” (Delbos par. 3). We must address this problem by taking action and increasing the working population so that the tax those workers will pay can help pay off the national debt.
National debt is when the government has borrowed money from a source and cannot pay them back. The cause of the Czech Republic’s national debt was the amount of money that they didn’t pay back the parliamentary republic. “The reaction of the parliamentary has been to slow down the growth of the market and to prepare a legal framework for this debt” (Czech Republic 7). It is necessary to introduce framework to prevent excessive borrowing in the market. In 2009, the Czech Republic’s economy had a tremendous downfall due to national debt. “The Czech Republic’s national debt raised 24 percent to 37.4 percent of the gross domestic product” (Delbos par. 2). The GDP, or, Gross Domestic Product, was the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. The Czech Republic has a population of 10.2 million, which means that the real...