National debts and deficits
The business model that banks use is so unstable that it has to be propped up by the taxpayer.
Taxpayer support ends up increasing the national debt for two reasons.
Because the system is so unstable, it regularly triggers recessions. This means that fewer people are working, less taxes are paid and as a result the government has to borrow more just to avoid slashing a huge amount of government services.
The government cannot keep increasing the national debt forever - at some point people will start to question whether the government can repay, trigging a 'sovereign debt crisis' which can potentially bankrupt a country's government.
New Zealand’s national debt currently stands at a little over $183bn, which is almost $42 000 per citizen. There is no way this debt will ever be repaid unless we fundamentally restructure our economy. Should the government even try to pay back this debt the level of services it would have to cut would mean that thousands of people would be thrown into unemployment, and would need to find other jobs.
All these people will require unemployment benefits whilst they look for jobs, and, should they find jobs, they will be paid with money created as debt, should the economy grow (read, indebt itself) enough to facilitate this. As the only end result of allowing banks to continue creating money in this way is another financial crisis, the end result of cutting services and paying back the national debt will only be an even bigger financial crisis, leading to an even bigger national debt.