Education·23 January 2026·4 min read
Public debt — a country's credit card
States borrow too. What public debt is, when it's healthy and when it becomes dangerous.
Public debt is the sum a state owes to those it borrowed from (through bonds). States borrow for roads, schools, hospitals or to cover the budget deficit.
How much is too much?
Moderate debt is normal and useful. But if it grows too large relative to the country's economy (GDP), interest rises and the risk of a crisis appears, as in Greece. The same rule as for people: you can borrow, but with measure.
