Why are most countries in debt, who do they owe, and what are the consequences? Why do they go into debt in the first place?
In: Economics
Debt is a tool. Countries like all corporations have debt that they use to invest in projects to improve their revenue. Examples being, governments spend money on education and infrastructure. Roads help people get to work, education helps them get higher paying jobs, all of that income results in more tax revenue.
Corporations use debt for things like R&D, or to build a new factory or data center, which they use to make and sell more products.
They owe that debt to investors, who buy bonds. Average people like us basically.
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