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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If I’m making $100 a day, but someone tells me I can make $200 a day by buying a fancy new appliance that lets me make cooler stuff, then I might take out a loan to buy that equipment and increase my income as soon as possible. As long as my income gains outpace the rate of interest I need to pay on the loan, I will end up in a better position even if I’m in debt.
Now scale that up to a country level. They will do that over and over and over again, causing their debt to grow, but their GDP to grow even faster. The richest countries are the ones that can handle the biggest loans with the most interest, so they are the ones with the most debt
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