Originally posted by Bradley
So no one is going to answer my question???
Why do people continue lending a nation that's so heavily indebt money?
If someone owes me 14$ the last thing I'm going to do is make it 24$
Less than half of the US national debt is held by the Federal Reserve and other government entities. The rest is held by private investors and foreign entities.
I'm fairly certain that any department of the federal government hasn't received a loan from a foreign entity in quite some time now. The US lends money to other nations instead, as well as military equipment and humanitarian aid.
Individuals/businesses, foreign or domestic incur debt as a means of economic growth, they are betting that the money that they acquire with debt can be used to purchase land, labor and capital, which can then be used to generate a profit that exceeds the interest rates that they must pay.
US Government has done this at times with subsidies, it also has printed money in order to issue stimulus checks like you saw during the COVID-19 pandemic.
