Increasing government spending as a means to reduce national debt can lead to higher interest rates, negatively impacting economic growth.

When a government increases spending to reduce national debt, it often borrows money by selling bonds. This borrowing can lead to higher interest rates because there is more demand for loans, making it costlier for businesses and individuals to borrow money. Higher interest rates can discourage people from taking loans for things like homes or starting businesses, which slows down economic growth. For example, if a small business owner needs a loan to expand their shop and interest rates are high, they might decide not to borrow, leading to fewer jobs and less economic activity. Therefore, while government spending can help manage debt, it can also create challenges for the overall economy.