How Does a Country’s Debt Affect its Citizens?

Currently my country, Philippines, has tons of debt and it keeps increasing every year.

There’d be stats like, each Filipino has 120k php (around 2.3k usd) of debt. But of course the individual doesn’t directly pay for the debt but rather supposedly taken from the taxes we pay.

So how does it actually work?

  • boyi@lemmy.sdf.org
    2·
    1 year ago

    Still vague to me. Care to explain on the external factors that make it meaningful?

    • Sethayy@sh.itjust.works
      1·
      1 year ago

      Tbh more or less matters on an intra-country scale, as US could borrow a shitload anytime and pretty much everyone would be happy to take that investment. Investing in the Philippines is much less attractive, and so gives them less spending power

      • boyi@lemmy.sdf.org
        2·
        1 year ago

        ok, so. the way I see it the same as in investment. As long the debts can create revenues, you can pile up more debts.

        • twistedtxb
          2·
          1 year ago

          That’s the way I see it as well. And probably why we don’t see that metric often. GDP is more an accurate indicator of financial stability / purchasing power (although also flawed)