Can you explain like I’m five, what is the national debt, how does it exist, where does the money come from or go?
Do we just pay monthly on it, because God knows if I was to not pay on my debt, someone would hold me accountable….
Thanks.
In: Economics
>what is the national debt
Money the federal government owes to holders if US bonds.
>how does it exist
Because the government spends more than t makes in taxes
>where does the money come from or go?
It comes from anyone holding bonds which could be pension funds, insurance companies, rich people, foreign governments etc.
It goes to the general US fund which is mostly spent on the military and entitlements
>Do we just pay monthly on it
Yes, the government pays interest on the bonds monthly
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