But American debt is both a positive thing and a necessity for your quality of life. And let me do a classic Ronald Reagan I'm explaining and losing now to tell you why...
So 80% of American debt is owned by americans. We literally owe it to ourselves. This is the equivalent of you loaning yourself money. Only it's a little different than that because you're not a nation state.
When America loans itself money that is effectively creating money supply. That is perfectly fine as long as that money supply is going to the general good and the general public.
Where it becomes a problem is where it is used to finance tax cuts for billionaires which is what it's being done since 2016 at least. That's a problem not because of the debt itself but because billionaires get all this extra cash they use to buy up competitor businesses and then Jack up prices using Monopoly power. But again the debt itself isn't the problem it's the power and leverage we are giving to approximately 2,000 people.
Now let's talk about the international debt. You want that. You want it very badly.
That's because the national debt internationally, which is only about 8 trillion or 20% of our total debt, is leveraged to maintain the high value of the US dollar relative to other currencies.
That high value lets us get trillions of dollars of cheap imports for a fraction of their actual economic value. It's basically a form of economic imperial tribute.
Everyone thinks about cheap TVs and coffee pots but nobody thinks about the hundreds of billions of dollars of steel and lumber and finished goods and industrial products we bring in. Those products are often used by manufacturing companies to produce advanced medical devices, cars and heavy industry equipment like planes and heavy construction equipment that we sell on to other countries.
All this is possible because we wrap countries up into our debt and make our currency and our country as a whole more valuable.
This is a complex almost colonial system (oops just triggered some people) that is why you have been able to maintain any semblance of a middle-class existence while automation devours middle-class jobs for the last 45 years.
Look at the value of the US dollar since the trade war started and the national sales tax hit and you will see it plummeting. That is bad news for you because that's going to make prices skyrocket. You haven't seen it yet because companies saw the trade war coming and stocked up on materials. They are running out and you're going to start really seeing it soon. And you have minimum three and a half more years before we can even try to start fixing this mess.
But everything above is way too complicated for most people to really get their heads around and like I said when you are explaining you are losing so we are well and truly fucked.