The National Debt of The United States of America The United States National Debt is trillions of dollars in “the hole”. The debt continues to rise, therefore the country is surrendering to poverty. Because of this loss, the future incomes and living standards shall be reduced. (Agresti) America`s future welfare is at stake because it`s climbing debt is not slowing down. It may also cause increasing taxes, which could quite possibly lead to inflammation.
At the same time, the Republicans are calling for a $245,000,000,000 tax cut. Their plan is supposed to restrict the growth of Medicare. This is a good start, but they have no definite plans on how to restrict it. Basically, the Republican plan aims to balance the budget entirely at the expense of the young (for whom we are trying to balance the budget), the environment that they will inherit, the poor, and the weak, while sparing the rich, thealready-by-far most powerful military in the world, the elderly (the ones who accrued most of this debt for us),
There are two dichotomous problems facing the American economy today. First, how do we stop home foreclosures and, ultimately, loan failures in the country as a whole? Second, how do we encourage the flow of money from the banking industry to the public in order to enable free and aggressive economic growth through spending? It is clear the American economy has grown faster than the individual citizens can pay for. Without the utilization of consumer and industrial credit, continued economic growth will be, at best, slowed and, at worst, entirely stymied.
Over time, this process (along with a steady dose of inflation) is intended to reduce the national debt-to-GDP ratio by literally de-valuing government debt. But such a policy cannot be pursued or executed without raising certain questions and creating certain controversy. The following paragraphs will attempt to explain this concept in more detail, and discuss the pros and cons of its implementation by the United States. Past situations in which governments have found themselves under such indebted circumstances have taught us that there are usually the same handful of solutions that can be used to rectify a struggling economy. The first is economic growth, to where the GDP grows at a fast enough rate that the economy is literally able to grow their way out of their debt.
This forced the government to use public money, to keep the banks afloat and resulted in decreasing our budget by billions of pounds (also causing inflation levels to rise). So what is our tax money going towards now? Instead of paying for the much demanded and quite frankly desperately needed improvements in healthcare, housing and education we are now investing in unstable banks, with the hope that everything will soon be fixed, which, to be honest, sounds good, but it’s going to take a long time, longer than anyone thinks. If we were to become independent, we would be in huge debt, and, owing 3.6 billion is a lot when there is only a population of about 5.4 million in Scotland. If we weren’t to become independent, our debts would get paid more quickly.
The concept is fairly simple. A ten-percent unemployment rate for the month of November in 2009 is an improvement, but still a tremendous hit (U.S. Bureau of Labor). Nevertheless, it is not easy to create jobs when companies do not have money. Obama made a smart move by saving big corporations from downfall, but he did not secure small businesses and the jobs that are associated with them. What he failed to consider is that many of the big companies are sending work overseas, and this hurts the American economy a great deal.
While Bernie Sanders disagrees with American outsourcing, I cannot. Sanders’ argument focuses generally on American jobs, claiming that “We have been losing millions of jobs as a direct result of our disastrous trade policies … We must do everything possible to stop companies from outsourcing jobs” (44). While perhaps low-skill manufacturing jobs are gone, macroeconomics proves that the increased economic efficiency outweighs the initial unemployment. The outsourcing of low-skill labor allows national economic focus on high skill labor outputs. This situation allows the for price of exports to go up and keeps the costs of imports low - a favorable condition for the growth of Gross Domestic Product (GDP).
With the current economic market still reeling from the effects left by the recession that consumed the United States for eighteen months, we should take the time to weigh the benefits against the possible results that raising the minimum wage could cause. Statistics show that an increase in current wage would do more damage to the already unstable market, than the good that so many government officials want everyone to believe. The misinformation that is being delivered to the ever growing population of poor individuals provides them with false hope that the extra money that they will be receiving in their paychecks will pull them out of poverty and save them. The Truth Why Minimum Wage Should Not Be Increased The minimum wage debate has been ongoing since its inception when signed by Franklin Roosevelt on June 25, 1938. This bill has been widely criticized by its opponents generating countless studies as to the effects each forced increase would cause.
Fraudulent claims cost taxpayers money at a time when taxpayer money should be held precious. Politically, media resources suggest the increase in fraudulent claims is a result of the “poor economy” (Leap, 2011.) Insinuating lack of jobs has persuaded individuals to explore other forms of income (Leap, 2011.) Lawmakers are reluctant to address this issue due to perception... ... middle of paper ... ...ion (2000). Diagnostic and statistical manual of mental disorders (4th ed.
However, as soon as the war ended the deficit would be eliminated. When a government spends more than the revenue collected from taxation, tariff, and other fee revenues, the country must borrow money to cover the deficit it faces which when accumulated over the years becomes the national debt. In addition, there are two types of national debt, internal and external debt. Today the debate over the national debt crisis continues and many U.S. citizens are concerned about their financial future. Although, both the Democratic and Republican parties have their own opinions on how to fix this issue, a decision must be made to solve this issue before major repercussions.