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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Theres good debt and bad debt. Good debt makes you money, bad debt doesn’t. Taking out a loan to buy a business is good debt. Buying a house is good debt. Taking out a loan to buy a TV is bad debt.
The more money you have (or make) the more debt you can take out. Apple for example has 100B in debt but makes 85B a year. I have — let’s say — 300k I’m debt but make 150k a year. The US has 35T in debt but makes 29T a year.
As long as you service your debt then it isn’t a problem. The USA pays 900B a year to pay for the debt, or 3% of how much they make. I pay 24k a year to pay for my debt, or 16% of my income. Apple paid 3B for their debt, or 3.5% of their income.
You can’t just look at “debt” I’m absolute terms. It needs to be looked at in aggregate.
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