Finance questions: 1. Why can the government intervene in the economy? 2. Why does the government issue national debt? 3. How to understand the relationship between deficit and national debt

I am studying economics but I can’t give you a comprehensive answer like a textbook, but no one has answered anyway, so I will just tell you my understanding

1. New Economy Socialist theory holds that the government should not interfere with economic development. However, after the economic crisis broke out in the United States, our country expected that economic development would require national macro-control.

There are many ways for the government to intervene in the economy, such as taxes, interest rates, national debt, and foreign exchange.

Financial means include controlling the circulation of money, the discount rate of the central bank, and the interest rates of banks to control people's speculative desires.

2. The treasury and the government are two independent departments. When the government has no money, it cannot directly ask the treasury for it. It can only raise funds through loans and the issuance of treasury bonds.

3. When a government spending deficit occurs, it will issue national debt to fill it. However, the national debt itself is a kind of fixed-term debt. If it cannot be repaid when it expires, a new deficit will be formed, and the people will begin to distrust it. The government stopped buying national debt, causing the deficit to get bigger and bigger (the European debt crisis broke out)

The original poster can just refer to it, and I will have fun