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National Debt: Boon or Burden? Economics Behind Government Borrowing

Geoff Riley

6th March 2025

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Governments around the world borrow billions (sometimes trillions) to fund essential services, infrastructure, and economic growth. But when does debt become too much? Can a country really sustain a debt level over 100% of GDP without facing an economic crisis? And how does the UK compare to other nations in 2025?

Stick with me as we break down:

🔹 The potential benefits of national debt – from economic stimulus to investment in public services

🔹 The risks of excessive borrowing – rising interest payments, inflation, and even financial crises

🔹 The key role of bond yields and why financial markets pay so much attention to them

🔹 Whether high national debt always matters – or if it depends on factors like GDP growth, investor confidence, and monetary policy

By the end of this video, you’ll have a clear understanding of how national debt shapes economies and what it means for students, policymakers, and investors alike!

National Debt: Boon or Burden? Economics Behind Government Borrowing
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.