ELI5: Explain Like I'm 5

Trillion-dollar coin

Okay kiddo, listen up. So, you know how people use coins and bills to buy things? Well, sometimes, the government can also make special coins called "commemorative coins" that are really fancy and valuable because they celebrate something special, like a president or a historical event.

Now, some grown-ups have come up with a really interesting idea called the "trillion-dollar coin". They want the government to create a coin that's worth one trillion dollars.

Here's why they want to do that: you see, the government needs money to pay for all the things it does, like building roads, schools, and hospitals, and also to help people who need it. But sometimes, the government doesn't have enough money, and it has to borrow money from people and other countries. This is called "national debt".

The trillion-dollar coin could help solve this problem. By making this coin, the government can use it to pay off some of its debt, and then it wouldn't have to borrow so much money.

But why a trillion-dollar coin specifically, you ask? Well, a trillion dollars is a LOT of money. If you stacked one trillion one-dollar bills, the stack would be as tall as Mount Everest - the biggest mountain in the world!

So, if the government made a coin that was worth one trillion dollars, it would be a really big deal. But some people say it's not a good idea because it might cause inflation, which means everything would become more expensive.

Because, let's be real, even if you're a five-year-old, you know that having too much of a good thing can be a bad thing. And having too much money can be one of them.
Related topics others have asked about: