eli5: Why is the US commonly called the “wealthiest country” if we have 30T in debt?
In: 5
The word “debt” in this case doesn’t mean “money the US is spending but doesn’t have, thus running the risk of getting all its stuff repossessed”. It means bonds. People buy US Treasury bonds (aka they lend the US money to carry out its projects for the future) because it’s the safest investment on earth— the US always pays them back, plus interest. But technically since it’s people giving the govt money, and the govt promising to pay it back, then it’s a kind of debt.
People always look at that number and think “omg the US is selling plasma and eating ramen” but really it’s “US citizens just loaned money to thrir own government . the citizens will get it back, plus more”
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