Awet Tesfaiesus, MdBCorrect me if I’m wrong, but Japan has had near-#zerogrowth for almost 25 years now, and it seems the world hasn’t come to a halt and society hasn’t collapsed.
90% of debt is to its own citizens, I read.
basically a tax credit scheme, then
Marcin Cieślak35% of the tax revenue go to pay off the debt
https://www.mof.go.jp/english/policy/budget/budget/fy2025/01.pdf
The largest lender is Bank of Japan which is not exactly citizens.
https://en.wikipedia.org/wiki/National_debt_of_Japan seems to have nice history of this.
Pretty weird setup, I agree... Japan is known to have the largest public debt by far among the rich countries.
@saper not in absolute numbers