250% DEBT/GDP FOR JAPAN | UNDERSTANDING SOVEREIGN DEBT
#SOVEREIGNDEBT #debttogdp #useconomy #japan #governmentdebt #macroeconomics
Here in this video, I have discussed about what is sovereign debt. Governments borrow when they fall short of the tax revenue. The money is borrowed to fund investments or welfare programs. Almost all countries have some debt, but some are highly debt ridden. Japan, for example, is highly debt ridden (although that is not a big issue as it is a developed economy). The US is highly debt ridden as well with over $31 trillion debt as of 2022, which is expected to cross $50 trillion by 2050. Watch this video to understand why countries, despite being rich, still borrow.
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