# Is the US national debt essentially meaningless?

**URL:** <https://boards.straightdope.com/t/is-the-us-national-debt-essentially-meaningless/483524>\
**Category:** Factual Questions\
**Created:** [January 29, 2009, 9:33am UTC](https://boards.straightdope.com/t/is-the-us-national-debt-essentially-meaningless/483524 "2009-01-29T09:33:20Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![PaulParkhead](https://avatars.discourse-cdn.com/v4/letter/p/7ea924/32.png) [@PaulParkhead](https://boards.straightdope.com/u/PaulParkhead)\
**Post date:** [January 29, 2009, 11:37pm UTC](https://boards.straightdope.com/t/is-the-us-national-debt-essentially-meaningless/483524/21 "2009-01-29T23:37:53Z")

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> [@mecaenas](#):
>
> I don’t want to go all doomsday on everyone, just trying to get my head around what incentive the govt has to pay back the debt. Afterall, if creditors keep assuming the US is always a good investment and there’s no incentive and no penalty for the govt to clear its debt then there’s little likelihood of doing anything about it. Right?

Broadly speaking, the incentive the US government has to repay its debt is the ability to borrow more in future. Also, the ability to borrow at very low interest rates.

Investors are prepared to lend money to the US government at low rates because it is a safe bet: the US does not default on its debts. I don’t believe the US has ever defaulted.

Creditors assume that the US is a good investment because it has, up until now, _actually been_ a good investment. Low returns, yes, but very safe. That would change if the US defaulted.

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