Deadweight debt

Updated: Aug 20, 2021

A debt incurred, normally by a government rather than by an individual, as a result of borrowing, not secured by the purchase of an enduring asset, to meet current needs. The most common form of deadweight debt is the national debt, which accumulates over a long period of time by the issuing of non-redeemable bonds by the state – usually for such thankless purposes as fighting a war.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.