Eli5: What is a default in the Economy ?
In: 3
Default is when you don’t pay money you owe when the money is due to be paid. Almost always this is because you *can’t* pay it, like you just don’t have the money.
If you’re reading the news, you might hear them talk about “the US” going into default, and they’re talking about the federal government. They’re talking about fears or the possibility that the US government might not pay the money it owes when those payments come due.
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