How can an economy be bases on debt , such as the US, and how does it work?!
In: Economics
Economies are not “based on debt”, that’s not an economics concept.
Economies have government debt in them, and private debt as well, because investors see the economy as stable enough to risk present day money in favor of having more money in the future. The higher the debt level an economy can support without inflation, the more large and stable the economy is.
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