Final answer:
Great Britain's debt increased significantly due to the French and Indian War, and it was expected that British subjects in North America would contribute to repaying this debt. The growth of the national debt was exacerbated by the costs of maintaining an army and administering newfound territories, despite the country's economic prosperity from trade and investments.
Step-by-step explanation:
According to Greenville, Great Britain had a large debt due to the costs incurred from the French and Indian War, a conflict that greatly contributed to doubling the British national debt. The war efforts led to a depletion of financial reserves, necessitating a search for new revenue sources to manage the debt and interest payments which consumed a significant part of the national budget. It was believed that British subjects in North America, who were among the main beneficiaries of the military protection and territorial gains, should help pay off this debt. Furthermore, the government's need to borrow to pay for public services and infrastructure can also contribute to national debt, regardless of a nation's wealth or economic growth.
Great Britain's economic model during the 18th century, which included dominance in trade such as the slave trade and the activities of the East India Company, created substantial capital that fueled investments and wealth. However, this wealth was not sufficient to offset the expenses from expansive wars, leading to a larger national debt which had a ripple effect on taxation and imperial policy, particularly in the American colonies.