What would happen to the economy if all debt was erased?Well for one thing that would mean all savings (a debt the bank owes the saver) would be wiped out, and since money is a bank note with a value implied by the ability of the note to remain liquid and viable all money would become valueless… and so all commerce would revert to note-less barter.
What would happen if all consumer debt was erased?If everyone stopped getting in debt and paid off all their credit cards, saved for everything and spent what they earned this will increase the savings excessively which will decrease the circulation of money in the economy.
What would happen if all national debt was paid off?The US national debt is mostly owed to the American people. If the ~$17 trillion national debt were all paid off tomorrow by printing the money, then the American people would suddenly receive ~$13 trillion dollars which the US government owes them.
What will happen if we don't pay off the national debt?With no money to pay bills and the inability to borrow to pay down debt, the result can eventually be bankruptcy. To avoid them, Congress has to do something it rarely does these days—agree. In this case, agreement has to be reached on how to fund the government and how to borrow enough money to pay the bills.
Why is debt important to the economy?A nation saddled with debt will have less to invest in its own future. Rising debt means fewer economic opportunities for Americans. Rising debt reduces business investment and slows economic growth. It also increases expectations of higher rates of inflation and erosion of confidence in the U.S. dollar.
What would happen if the world's debt disappeared?
What country is in the most debt?Japan, with its population of 127,185,332, has the highest national debt in the world at 234.18% of its GDP, followed by Greece at 181.78%.
How will America pay off its debt?Raising taxes and cutting spending are two of the most popular solutions for reducing debt, but politicians may be hesitant to do both. Diverting spending from the military to other sectors may boost job growth, which could spur consumer spending and help the economy.
How much does the US owe China?As of Jan. 2021, China owns $1.095 trillion of the total $28 trillion U.S. national debt.
Can the US ever get out of debt?Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as simply hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial. Below are some things it could do.
Who does the US owe debt to?Public Debt
The public holds over $24.29 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.
When was the last time we had no national debt?On January 8, 1835, president Andrew Jackson paid off the entire national debt, the only time in U.S. history that has been accomplished. However, this and other factors, such as the government giving surplus money to state banks, soon led to the Panic of 1837, in which the government had to resume borrowing money.
Who owns most of US debt?Foreign holders of United States treasury debt
Of the total 7.5 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 970 billion U.S. dollars in U.S. securities. Other foreign holders included oil exporting countries and Caribbean banking centers.