The Problem today is that the United States of America is on a very unstable financial path. The Federal debt is unsustainable. The government is spending more money than revenues that are being brought in, and they are borrowing money from feign countries to make up for the difference. More than 50% of the US debt is owed to foreign countries, the most is owed to China. If the creditors lose faith that the US can repay its debts, this may send us into a debt crisis. The budget has not been balanced since 2001. Since 2001 the GDP (Gross domestic product) rose from 33% to 62%. As the baby boomer generation reaches retirement age the situation will get much worse. The coast of health care will raise with less people paying into it. The Federal debt is driving up interest rate for all borrowing, making it even harder for people with business and the economy. (The Moment of Truth. pg. 11-12). "The Outstanding Public Debt as of 26 Nov 2013 at 04:56:35 PM GMT is: $17,219,876,068,607.85 .The estimated population of the United States is 317,122,530 so each citizen's share of this debt is $54,300.38. The National Debt has continued to increase an average of $2.73 billion per day since September 30, 2012!" (U.S. National debt clock. Web 1). There is no doubt that the Unites State Of America has a hug debt, and there must be something done about it. $54,300.38 and rising is far more than I want to pay, and I am do not want to have that number continue to rise. The United States government must do something to the out of control spending and the ever increasing debt under control, not only for our own sake, but also for the sake of our children, and our children's children. The Solution: I do not believe that raising taxes and yet keeping the same level of spending is the answer to our debt problem. I believe that we must cut all unnecessary , and unaffordable government spending. I would let the Bush tax cut expire, except for the AMT patches and Estate tax which would remain at 2009 levels. This would be the only rise in taxes that I would allow. One of the major areas of spending is Social security with over 22% of the
fiscal policies that are potentially devastating to America's future. Chairman of the United States Federal Reserve, Ben Bernanke, quoted regarding his bold disapproval of monetizing debt, “The Federal Reserve will not monetize the debt, either cuts in spending or increases in taxes will be necessary to stabilize the fiscal situation” (Hill 1). Monetizing debt is defined by the selling of national debt to primary buyers in the form of a Treasury bill or bond. In laymen's terms, primary buyers, both
Since the early 1970’s, Americans have had trouble controlling a huge money issue. The United States government has engaged in deficit spending. This occurs when spending exceeds the amount of income taken in (“Budget”). American politics have been trying to come up with ideas that the government can implement to fix our current deficit issue. Some strategies that the government may use are spending less, collecting more taxes, and balancing trade (“Atkins”). The federal deficit has become a big
Revolutionary War, the Americans fought over half the war without a federal government. That was recognized, and some of the problems were fixed by 1777 with the Articles of Confederation. Because there was no federal government, the Continental Congress had to take on an enormous amount of responsibilities. They had to create the Continental Army, print money, manage trade and most of all they had to analyze and deal with the national debt. The Continental Congress were completing these tasks and did
government meeting these goals? One specific case with this relationship is the relationship between the federal budget, and the goals in the preamble. The federal budget is meeting the goals set out in the preamble of the constitution because the federal budget defends the country, promotes the welfare of America’s citizen, and establishes justice
The causes of the Great Depression of the 1920's and 1930's has been argued about for generations. Most people agree on several key topics and that it was the severity and length of time the Depression lasted that was actually the most remarkable. Hoover made many noteworthy attempts to try and solve this crisis, yet in the end it was President Roosevelt and his "New Deal", that brought many Americans hope for the future. The first factor in the start of the Depression was the lack of diversity
The responsibilities would include managing debt, creating national monetary and fiscal policies, as well as managing the national tensions that lead to crisis. Men like Alexander Hamilton, George Washington and John Adams, were in favor of the Constitution, supported the Bill of Rights and subsequently, a larger more powerful federal government. In their views for support of a federal government they proposed the Constitution and later added the first ten amendments
of the debt accrued from the Revolutionary War. Hamilton 's address tells the story of a significantly indebted newfound nation in desperate need of financial reorganization. He first discusses the strain that could be placed on public credit from public engagements and that the expensive engagement of war against Britain was the price to pay for liberty. Subsequently, he delivers his plan, which focused on the full payment of foreign loans, redemption of bonds (which would create new debt, but nonetheless
Imagine an America pulling away from British. Imagine a man with massive amounts of knowledge of economics, politics and social systems who stood up against the Brits, and supported the Constitution. That man was Alexander Hamilton. Alexander Hamilton was founding father, federalist, economist, and American philosopher. Alexander Hamilton has influenced many modern days ideas, from the way America should be ruled, to how a country should always have a five point plan, and finally basics American
Student debt is more and more popular with nowadays. Education becomes necessary, so it is the reason why more students have to take out the loans to helping for their education. The article " Forgive students loans" by Richard Vedder was written to oppose the current student loan program for college students, and he argues for legislation proposed to forgive loans. He thinks that the impact on student loans debt to the economy of America is seriously, and it can be a big trouble for finance of America
Politics began to play a bigger role in the lives of American colonists during the beginning of a growing country. After the Declaration of Independence was written in 1776, the country was challenged with the problem of creating a process for governing the states. The Patriots were concerned about forming a centralized Parliament, like in Britain, because power was abused by the wealthy. Initially, the vision was to give states governing authority and leave minimal power to a national Union. But
Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and without food. Many people came to depend on the government or charity to provide them with food. The Depression became a worldwide business slump of the 1930's that affected almost all nations. It led to a sharp decline in world trade as each country tried to protect their own industries. The Depression led to political turmoil in many countries such as Germany where poor economic conditions helped lead to
issue the young republic faced after the new congress took power under the new constitution in 1789, and George Washington became president was searching for stability. In the young republic 's search for stability they needed to cover many bases politically, socially, and culturally. Being a new nation America needed to become secure and stable in the world. In order to become more stable the book describes a few things which the republic most do. The book suggests in order to become more stable that
Drowning in Debt "I 've had to compromise who I am . . . because I started down a path that I couldn 't turn away from. Student loans aren 't hope. They 're despair."(Rolling Stone) College students are the future of America, yet many of them are being punished for getting a college degree. They are told that college degrees are the right thing to do, and will get them a better job. But they are not being told about the debt that comes with it. You go visit colleges, see their campuses, and are
most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt" (Bussing-Burks, 7). A lot has changed since Jefferson was President two hundred years ago, but the need to be financially solvent is something that will always be necessary for the United States to maintain its leadership position in the world. The United States of America currently owes $16.7 trillion in debt primarily as a result of the government’s
The Articles of Confederation, ratified March 1, 1781, were the first attempt at organized government in America. The individual states were given too much power, while the power of the central government was very minimal, leading to the near demise of the young country. An anonymous writer in the Norwich Packet proclaimed in 1786, “Each State at present possesses powers so totally independent of the others, that no general system can be adopted. They begin to find that a government with so many