The portion of the public debt owed to foreigners does not represent any real economic burden to
Americans because we received money from foreigners when we incurred the debt.

Question

Quizplus · Accepted Answer

The portion of the public debt owed to foreigners represents a real economic burden because it requires future interest payments and principal repayments to be made to foreign creditors, which transfers wealth from Americans to foreigners and may require higher taxes or reduced government spending domestically.

The Portion of the Public Debt Owed to Foreigners Does