Debt is Sometimes Justified

Reports like these are alarmist.  For example, while Singapore’s debt did reach 130% of GDP, much of it was borrowed from its own Reserves.  It was akin to dipping into savings.  Borrowing to fund stimulus measures in a global economic shutdown is expensive.  However, it is far more expensive to do nothing, since keeping industries on life support is cheaper than reviving a dead one. 

When we look at borrowing, we must also consider where that borrowed money is spent.  If it is spent on infrastructure development or on maintaining production capacity, that is an investment in future growth.  If it is borrowing to transfer wealth from one strata of the country to another, then that is impoverishing the entire nation.  We cannot simply collate numbers and measure against GDP without any context.