Analyzing The Stock Market Crash

The amount of money that the United States government owes as of October 17, 2004 at 03:48:52 pm GMT was $7,435,016,998.21. The debt has increased by an average of $1.7 billion per day since September 30, 2003! From a more individual perspective, currently the United States population is roughly around

Federal debt has been increasing for at least the past ten years. Currently, federal debt is $19,929,184,161,352.13 (Chantrill). The national debt has nearly doubled throughout Obama’s presidency and President elect Trump’s ideas do not look promising for change. It is estimated that Trump’s tax cuts will raise federal debt by $7.2 trillion within the next decade (Mauro). Many debt crises have occurred because of declines in growth. When

Currently, the United States owes approximately $19 trillion in National Debt. It is owed to Mutual funds, pension funds, foreign governments, foreign investors, American investors and many others. From the year 1959 to 2015, the United States debt has gone up by around 7554% from the debt in 1959 starting at $285 billion. The debt itself has increased by around 9 trillion since Barack Obama has taken the Presidential office in 2009. Everything has been done to increase national debt, but nothing has been made to reduce the national debt.

Many Americans today are aware that the United States is in debt, however, some may not realize by how much. Currently, the United States National Debt is up to 18 trillion dollars and is steadily increasing. This is a serious problem for the U.S., especially for millennials, who are going to be the ones living and dealing with the debt left behind for them. Increased spending, borrowing from China, and interest on the money borrowed are setting up our economy for an eventual crash, one that the upcoming generation may not be prepared for. Every dollar that accumulates into the debt will have to be repaid with interest at some point, making it harder to pay back. To gain a better understanding of how the U.S. dug itself into such a deep hole, one should start at the beginning of where the debt started.

In 2009 the debt was amounted to about $12 trillion , or 83.4 percent of the country’s GDP (“Budget of the United States Government: Historical Tables Fiscal Year 2011” table 7.1). Since 2003, the debt has been increasing by more than $500 billion annually. The increase in 2009 was $1.9 trillion. According to the Congressional Budgeting Office, this debt will keep increasing at least for the next decade (“The Budget and Economic Outlook : Fiscal Years 2010 to 2020” 21).

The total United States national debt is now over 19 trillion dollars and our Congressional leadership shows no signs of accomplishing any significant changes to make the situation better. That 19 trillion equates to almost $59,000 for every citizen of the United Sates. Sound financial practice is to not spend more money than you earn and borrow only for emergencies. It appears our Congress is incapable of adhering to sound financial practices as in the last fifty years there have only been five years when the U.S. recorded a budget surplus. Between 2009 and 2012 the U.S. added 5.5 trillion dollars to its national debt.

With all this debt, it begs to question. To who and what does the United States owe all this money? According to the “National Priorities Project”, 34 percent of the debt is owned by foreign countries, like China and Japan, 28 percent by federal accounts, and the remaining 38 percent is owned by other investors or local governments. Ever since the United States was founded, it owed money to the foreign investors and it has only continued to pile up.

With the United Stated national debt being over $19 trillion dollars, many Americans are worried about the country’s long-term debt problems. In order to make this national deficit, the government needs to operate with a budget plan. For the past 10 years, the federal government’s budget has continually operated as a loss. As the money continues to grow over time, the United States goes deeper and deeper into debt. Our current way of trying to grow our economy out of debt is not working.

National Debt in the U.S. has expanded rapidly throughout the years. In 2012-2015 it has increased by 70 percent. Most spendings are obviously spent by government in unnecessary facilities. Many people ask why is it affecting us and why has the government not issued a reform to solve it. This worries us because it doesn’t only involve an internal debt but a national debt as well.

We have a long story of debt, but it seems no one has been able to make it better. If the debt is increasing over time, the government has a budget deficit. Charles C. Turner, et al, defines the deficit as spending that exceed a revenue (482). In history, basic deficit or debt was usually from over spending from a war and economic issues like a recession or depression. Then the government had a budget deficit almost every year “between 1970 and 1997,” but the tax cut and more spending on defense by President Reagan in 1981 added more growth to the deficit. Also, another cause is from reducing of productivity seem in the GDP and lower tax rate (tax cut) (483). Even when the government had some budget surplus, still, it could not cover the debt. In 2012, the debt grew “over $ 16 trillion,” (482-483) and has increased more in recent year plus “2.9 percent” of the budget deficit in 2016 (The 2016 Long Term Budget Outlook, 2). To manage the economic depression, sometime policymakers cut the taxes and increase spending again by putting more money into the private sectors (Turner, 483); therefore, government goes further with the budget unbalancing. There are several reasons that lower the tax rate will not reduce the budget deficit closer to a balance.

The U.S. national debt is a serious problem. In order to become debt free, the U.S. government needs to make extreme changes to their budget; additionally, the U.S. population should also employ radical changes. Failure to rectify the National Debt will result in the destruction of American life, liberty, and pursuit of happiness. A question to consider: how long can the United States keep borrowing money without providing reimbursement? Is the U.S. financing with no intent on paying back? What are the consequences of borrowing such large amounts of money? Thus far, the U.S. has borrowed trillions of dollars without “breaking the bank,” although not without cost.

The history of the egregiously high national debt is fairly recent. During Bill Clinton’s presidency, Congress was on a pay-as-you-go system, meaning that Congress had to plan for how they were going to pay for every action that they took. The United States had a budget surplus, meaning that it had collected more taxes than it had spent. There are several

The national debt is a touchy subject in the United States. Currently, the debt is over 19 trillion dollars. Every program that is an expenditure within the budget is a reason the national debt is growing. It is not possible to isolate any particular spending, as the whole process is an unbalance in the money available and the money spent. There are a lot of expenditures that play into the debt being as high as it is. The budgeting process, the political aspects of creating a budget, and the spending of the money combine to create larger debt. The money has been shifted and shuffled to cover war and social programs. Lessening the amount of debt for the United States would require a re-alignment of political and social values, culminating

The truth is that America’s debt is unsustainable. Driven by entitlements, the yearly bills promise to get higher. It will create additional debt consuming more and more percentage of the nation’s GDP. Eventually, international funding will refuse to support the growing debt. Don’t believe it? Look at just two areas of out of control spending that threaten to crush America’s budget: health care and social security.

“Cutting down the expenses are a great way to make the budget look good in the short run, it makes the debt look smaller, but it also doesn’t help the GDP increase, if anything it does the opposite. In the long run, investments from the government in things like infrastructures, promotes the creation of jobs, increase the wealth of the population, which also increases spending’s of the