The USA and Chin have the highest debt in the world but i don’t understand the concept of them being some of the wealthiest countries, does that debt need paying off? How do they get this debt? Ultimately it just doesn’t make sense to me.
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It’s a debt to itself.
In ELI5 terms, if you have an allowance, it’s like asking your dad for an advance now to get a bike so you can make money delivering newspapers and return it back to him sometime later. You owe a “debt” to your dad and you’re working hard to pay it back, so your dad is probably never gonna call it in.
National debt is a good measure to know how much of an advance you’ve taken and what you’ve done with it so far.
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