eli5 Why it’s bad for country to default on it’s debt?

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eli5 Why it’s bad for country to default on it’s debt?

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Anonymous 0 Comments

It’s international credit rating goes down and has trouble borrowing. It brings on a period of austerity that lowers the standard of living of the country until it gets its affairs in order and can rebuild confidence internationally.

I want to say the last time the US did this was 1979.

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