How is the United States able to give billions to other countries when we are trillions in debt and how does it get approved?
In: Economics
While other comments about the nature of military aid and how government debt is different than personal debt are very true, we don’t even need to get that in depth.
Imagine if I asked, “how can someone afford buying a gift for their kids, if they still have a mortgage out on their home?”
While this person is in debt, this doesn’t mean they don’t have any money. Debt is not a negative bank account, it’s basically just borrowing from the future because you believe it’s better to spend the money now.
Also, when the US gives money to other countries, it’s not purely altruistic. The US (and the world as a whole) benefits MASSIVELY from international trade and stability, and spends money to maintain this.
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