This is a real question because people complain about our debt but the government spends a lot of money.
In: Economics
Yes and no. Essentially they have the ability to create unlimited money (Yes), but on the other hand doing that would be economic catastrophe (No).
So they take in taxes, and what they can’t cover they sell bonds to make up the rest.
People are concerned with the debt because it’s not something we can maintain long-term, as it stands we spend $300 billion or so each year paying the interest. That’s approaching 10% of our annual budget just to service outstanding debts, that’s $300 billion worth of any number of things we could use like fixed roads or better education systems or whatever that we now can’t have. And every year we borrow more and more.
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