eli5: Who does the US owe almost 32 trillion dollars of debt too? If it’s the most powerful nation in the world, can’t it just get rid of it?
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Because people who lent the government money want to get paid and the government has an interest in not being known as a deadbeat that doesn’t pay back their loans. If the government doesn’t pay back it’s loans then all future debts will be at a much higher interest rate making it harder for it to borrow money in the future since people who lend the government money will be less inclined to do so in the future without the government offering a large interest rate.
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