Why The U.S. Won't Pay Down Its Debt ?

The U.S. national debt continues to grow at an alarmingly rapid pace, causing some analysts to predict that at this rate, U.S. debt will become so large that it will be impossible to pay off. However, debt serves many useful purposes, such as preventing recessions and aiding the economy in times of trouble. These are some of the reasons why the United States will not pay off its debt, or at least doesn't want to.

The United States generates this debt by issuing documents called Treasury bonds, which are provided to investors in exchange for returns of up to 5%. The problem lies in the fact that if the United States cannot repay this money to investors or is perceived not to do so, people will no longer want to invest in U.S. bonds, inevitably leading to a global crisis.


CHAPTERS:
0:00 The U.S. National Debt
1:22 Why The U.S. Won't Pay Down Its Debt
1:29 What Is Debt
3:23 Debt to GDP Ratio
4:02 US Interest Rates
5:14 Why Isn't Debt Bad
6:09 What Is Debt Ceiling / What Is Debt Limit
6:38 US Credit Rating Downgraded


Produced by: Samantha Harvey
Edited by: Jacob Smith
Animation: Charlotte Brown