preview

American Economic Crisis

Powerful Essays
There are many things that are fundamentally wrong with the U.S. economy. In fact, warning signs are everywhere. Politicians are more concerned about elections than addressing the real issues. Voters are more concerned about whether gay people should be allowed to marry, rather than fixing the problems that affect all of us. All the while, the economy is diving further and further into its despair. One of America’s largest problems is the ever growing mountain of federal debt. Investors say that in some cases, debt can be a tool to make money. However, critics claim the United States has used its debt improperly. Politicians have claimed that the budget deficit is decreasing. However, history is showing us an entirely different story. The Treasury Department’s figures show the total outstanding debt on September 30th 2001 was almost six trillion. Ten years later, the debt has increased to almost nine trillion dollars. That is an overwhelming increase of over three trillion dollars. This country has also seen an explosion of debt at the household level. Some people have suggested that our higher standard of living is actually because of debt, rather than from higher wages. The American dream has become ‘borrow money, spend money, and hope to repay tomorrow.’ In fact, the average American worker’s wages have been stagnant for the last six years. Their paychecks reflect a simple increase of only ten dollars per week, after consumer inflation has been taken into account. On top of this, American’s save significantly less than in yester-years. All it takes is one hard hitting financial crisis, and the average American family is in a lot of trouble. The trade deficit is also a growing concern. As a nation, we consume far more ... ... middle of paper ... ...ther to fix the debt crisis, at both the federal and the household level. And, Americans should be taught how to save their money when times are good. And for goodness sake, let’s not borrow money for everything! Works Cited • Barnett, Tracy. “The 5 fundamental problems of the US economy.” The Agonist (2011): 1-3. 12-20-2011 . • Carnia, Catalina. “Romney defends record, jabs Obama on economy” USA Today (2011) 1-3. 12.20.2011. http://content.usatoday.com/communities/onpolitics/post/2011/12/mitt-romney-fox-news-sunday-barack-obama-/1 • The editorial staff, Economicshelp.org (2008) Tuesday, January 15, 2008 http://econ.economicshelp.org/2008/01/what-went-wrong-with-us-economy.html • Wolf, Richard. USA TODAY (10/28/2011) http://www.usatoday.com/money/world/story/2011-10-27/eurozone-crisis-deal/50963370/1
Get Access