Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

Question

Eli5: How can some country have trillions of dollar in debt like Japan but still functional without any consequences?

In: 101

Answer 1

Because not all debt is bad.

Just like buying a house puts most people into a large amount of debt the benefit is greater than the interest repayments.

Nations who get into debt to pay for large scale infrastructure projects that will have a benefit to the economy is seen as a good thing.

However nations get into debt to pay for commitments are often seen as bad, again putting it into an equivalent for personal finance you may use a credit card if your car suddenly breaks but you wouldn’t use debt to pay for something frivolous like a balloon animal at an amusement park