Is public debt the money the government owes us (the citizens) or ?
In: Economics
Foreign debt is accrued by the government borrows money and the public guarantees those loans with their incomes and private property. These loans are taken to fund public policies (unemployment schemes, education, Healthcare, civil servant early retirement schemes, etc), infrastructure (roads, airports, dams, etc), or events (eg Olympics).
In reality, the government usually repays the loans through taxation over various years. A lot of times the debt takes the form of a decades long plan or repayment in order to make the repayment more equitable to all the taxpayers though the years /generations, since it is considered that they will all benefit from the policy /infrastructure.
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