Why the Growth of National Debt Should Be Treated with Caution —A Warning from the Triad of Currency Value, Public Burden, and National Credibility—
■ Introduction: The Quiet Dependence Behind Expanding Public Debt Public debt often appears to be a flexible fiscal tool—supporting stimulus measures, welfare, reconstruction, and infrastructure. Yet, a society where the expansion of government debt becomes normalized is one that consumes its future wealth for the sake of present political comfort. ■ 1. Political Temptation and Structural Inflation As public debt grows, governments are tempted to rely on inflation-induced tax revenue and tax hikes to expand fiscal room. This creates the illusion of economic vitality and rising revenue, but in reality, it is the gradual erosion of citizens’ savings that sustains the illusion. Inflation acts as a hidden tax—it lightens the state’s debt burden by silently transferring wealth from savers to the government. Once this cycle sets in, fiscal discipline weakens, and both monetary stability and trust in public finance begin to decay. ■ 2. The Real Foundation of Currency Stability L...