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Analysos of Debt in the United States

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America is the number one debt carrier in the world with it current debt standing at 17.3 trillions dollars. This is a very high number that is only growing faster. Other major countries debt don't come close to the U.S. The debt of America doesn't just effect Americans, but every one in the world. With modern politicians being elected literally to lower the debt and fix the economy how can it continue rise at such a rate? Americans ask this question often, and even protest in Washington about it; But how does a country that has such a large role on world stage get such a high debt?

So how did America get in debt? Well America has always been in debt sins the creation of the country. But in recent years its the only thing that is talked about by news channels, politicians, and citizens. But were have this talk been for the past 33 years; because in 1981 are debt surpassed 1 trillion for the first time ever. It took a long 200 years to get to 1 trillion; but after president Jimmy Carter it raised at an unprecedented rate. To understand how the debt has reached these heights we need to look to our past.

In 1971, president Richard Nixon took America off of the gold standard. Although this wasn't a bad thing it lead America to develop more; but it removed what kept our spending in check. President Reagan and president Bush senior set the stage big spending by rising the debt to 5 trillion in just 12 years. president Reagan spent more on military then any other president before him. By doing this the soviet union tried to keep up with the large military spending and they bankrupted them self's by doing so.

When he became president in 1993, his deficit-reduction package through Congress that included higher taxes and...

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...of the economy. Taking examples from past recession raising taxes and spending money pumps more money into the economy. Its truly easier to spend money then to make it.

The consequence of this enormous debt is various but all have damaging affects to the country. Currently one third of total U.S. debt is own by foreign countries. Many of the foreign holder are investing more in their own economies as a result. By less countries investing into the U.S. demand for our currency will decrees causing interest rates to rise thous slowing the economy. By the U.S. continuing to add the already outstanding debt they are messing with powers that they can't manipulate for ever. If demands from the U.S. people aren't answered, the country may soon fall off a cliff that it been heading trows for years.
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