Countries around the world are grappling with painful national debt. Although it is thought of as a burden, our cartoonist KAL illustrates the benefits of debt.<br /><br />Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 <br /><br />The debt deficit distinction. Countries around the world are now grappling with painful debt. The economics A-Z described the term National Debt as the total outstanding borrowing of a country's government.<br /><br />Although it is often darkly described as a burden, debt has its benefits. It is a crucial ingredient of economic growth because it allows governments to make investments they would not otherwise be able to afford. But beware, debt can be dangerous.<br /><br />Debt incurred by one generation may become a liability for later generations, especially if the money borrowed is not invested wisely. <br /><br />Debt is distinct from deficit but they are related. A budget deficit is when less money comes into your budget than goes out in one year. Annual budgets deficit can accumulate, creating a substantial national debt.<br /><br />Tackling debt is not easy. In 1999 the American government celebrated a huge budget surplus yet the country still had a national debt equal to nearly half it's GDP.<br /><br />Daily Watch: mind-stretching short films every day of the working week.<br />For more from Economist Films visit: http://films.economist.com/ <br />Check out The Economist’s full video catalogue: http://econ.st/20IehQk <br />Like The Economist on Facebook: https://www.facebook.com/TheEconomist/ <br />Follow The Economist on Twitter: https://twitter.com/theeconomist <br />Follow us on Instagram: https://www.instagram.com/theeconomist/ <br />Follow us on LINE: http://econ.st/1WXkOo6 <br />Follow us on Medium: https://medium.com/@the_economist
