system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: why is it believed by some economists that national debt can be beneficial for a country’s economy?
gpt
Government debt is much more like Corporate debt than personal debt.

As individuals we're taught that debt is bad and we should do everything we can to get out of it. While Companies and Nations borrow money all the time and it's a perfect sane and reasonable thing to do so long as you don't go too far.

One economic theory goes that the government should borrow money during a recession. By putting money into the economy, creating projects and jobs, the government is helping the economy get running again.

The government makes it's money through taxes so it's said that for every dollar the government spends it gets 60-70 cents back in taxes. The stronger the economy, the more money the government brings in. So in the short term it's better for everyone if the government borrows money to help get the economy rolling.

Where-as if the government doesn't borrow money it instead needs to perform austerity measures, which means cutting back programs to save money. This in turn cuts back on jobs and programs that people need to survive, which makes the crisis worse and makes it last longer.

Another factor is much of the savings industry is built on Government debt. Pension plans, 401k's, life savings, etc are heavily invested in Government Bonds because it's a very safe investment. So even though the government is borrowing money from Joe Taxpayer, Joe does get something out of it. Both in the very programs that are being paid for by that debt, and by the interest he makes on his savings.