Monday, 6 May 2013

6: What Does Kenny Know About National Debt?

Kenny thinks that "national debt" is a country's government's debt that is owed to different countries across the globe. 
For example...
America owes China $5 because America wanted to buy two chocolate bars from Kenny's Convenience Store. Since America didn't have $5, they borrowed $5 from China.
^ This is an extremely small example of what national debt actually entails.
What most people do not realize is that debt doesn't just mean paying someone back with money. Debt can also be paid back with services rather than currency. This is one of the reasons why so many companies can call on the government for favours because of debts the government owes.

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