Rhaedas@fedia.io 1 week ago
It's a complex topic, but national debt is not the same as debt a person or even company would have. It's by design. How it's managed is another thing and where things go wrong.
Rhaedas@fedia.io 1 week ago
It's a complex topic, but national debt is not the same as debt a person or even company would have. It's by design. How it's managed is another thing and where things go wrong.
gAlienLifeform@lemmy.world 1 week ago
Yeah, basically every government in the world has some debt that they just keep perpetually refinancing to have additional cash on hand, it’s not a problem until you have other stuff go wrong (e.g. natural disaster, economic slowdown, lose a war, etc.) and your creditors get nervous, and then it can become a real big problem really quickly.
But still, you’re arguably just wasting your government’s power by not using debt/deficit spending, because government debt means paychecks for government workers or contractors and infrastructure or other services for your citizens that can effectively pay for itself in the long term.