Does country’s debts affect anything in that country? Why some have trillion dollars debts that look like it’ll never going to go away yet they can chill about this fact?

Question

Does country’s debts affect anything in that country? Why some have trillion dollars debts that look like it’ll never going to go away yet they can chill about this fact?

In: Economics

Answer 1

The government has to be able to borrow money to do things. Having a high level of existing debt makes it slightly harder to do this, which makes it harder to do the things that require borrowing money (usually large infrastructure projects).

Otherwise, no there’s not much of an impact.