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For the government debt it isn't a huge issue because the Government can essentially decide not to pay itself back. But for public debt it means that the econom
by thwarted 11y ago
For the government debt it isn't a huge issue because the Government can essentially decide not to pay itself back. But for public debt it means that the economy is held back.
"Public debt" is another name for "Government debt"[0]. From the rest of your description, you means "debt owed by the non-government public", private debt, or "household debt" (which doesn't strictly include corporate debt like your example outlines).
[0] https://en.wikipedia.org/wiki/Government_debt https://en.wikipedia.org/wiki/Government_debt
- ChuckMcM 11y agoAbsolutely, I'd edit the post but rather that acknowledge the gaff here. Debt the government owes to itself it has a number of ways to manage, debt between private entities is a much harder thing to fix without tanking the economy. The canonical example these days is the subprime mortgage crisis.