Government debt reduces fertility, distorts decisions, and impacts future generations.
The article explores how government debt affects families' decisions on having children. Debt can discourage having kids and reduce overall well-being. More debt leads to fewer babies being born and a higher ratio of capital to labor in the long run. If a government starts with debt, it's best to pay it off right away. But in most cases, it's not necessary to completely eliminate the debt for optimal management.