Why Governments Are Always in Debt | How The World Works
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Why Governments Are Always in Debt | How The World Works
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Why are governments always in debt?
Across countries, political systems and centuries, public debt keeps rising — yet the system never seems to “fix” it. In this episode of How the World Works, we unpack why government debt isn’t necessarily a sign of failure, but a core feature of how modern economies are designed to function.
We explore how national currencies work, why governments borrow differently from households, how politics shapes debt decisions, and why debt has existed for as long as governments themselves.
This is a calm, clear explanation of money, power and the system behind the headlines — without hype, outrage or oversimplification.
Next episode: Why central banks fear inflation more than recessions — and what that tells us about who the system is really designed to protect.