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Can you elaborate on how the country would be hamstrung with unaffordable debt? Like, what effects would that have on the country/citizens?
by yesfitz 1y ago
Can you elaborate on how the country would be hamstrung with unaffordable debt? Like, what effects would that have on the country/citizens?
- Whoppertime 1y agohttps://www.japantimes.co.jp/commentary/2025/05/22/japan/greece-word-japan/ https://www.japantimes.co.jp/commentary/2025/05/22/japan/gre... Japan would be a classic example of a developed country hamstrung by unaffordable debt https://en.wikipedia.org/wiki/Debt-trap_diplomacy https://en.wikipedia.org/wiki/Debt-trap_diplomacy While Chinese Debt Trap Diplomacy is a classic example of the trap poorer countries can fall into with unaffordable debt
- yesfitz 1y agoSure, thank you for the links. I was hoping for the original poster to respond with what they thought being "hamstrung by unaffordable debt" would look like for the United States. Do you have a vision of that? The article on Japan illustrated debt looks different between different countries (although Japan and Argentina are always economic exceptions). It's the same with people, I suppose. Someone with a $100k annual salary and $100k in debt can be a good thing (a mortgage or a cashflowing business) or a bad thing (credit card debt, high-interest student loans and no degree). Although someone with that same salary and $10MM in debt would be a different story, almost regardless of what they did with the money. So there's definitely an upper limit to debt.