Debt, Inflation, Job Destruction and its Impact on Economic Well-Being

This study aims at examining relationship between public debt, unemployment, government consumption expenditures, trade in services, inflation and economic well-being through statistical analysis using time series data spanning from 1991 to 2021. Life expectancy, which is proxied for economic well-being, is dependent variable, while public debt, unemployment, inflation, government consumption expenditures, trade in services were independent variables. Different econometric techniques, such as Correlation matrix, and ARDL Model were used to determine relationship between these variables. The findings reveal a negative relationship between public debt, trade in services and inflation with life expectancy while unemployment in youth and the Government consumption spending have a positive association with it. The study suggests that policymakers should prioritize public spending to reduce unemployment in youth and reduce public debt, trade in services deficit and inflation to reduce stress on economy and the people.