The Latin America Debt Crisis

The financial crisis in Argentina during the late 1990s and early 2000s resulted in severe issues with foreign debt, inflation, unemployment, and political turmoil for the country. Argentina not only suffered a currency crisis, but also suffered a political crisis. Fallout from the economic collapse was so severe the Argentinean population resorted to civil unrest and protest, which in turn exacerbated Argentina’s problems at the turn of the century. While other issues related to this financial crisis such as the impact on the lives of the Argentinean population or the political turmoil and corruption are certainly worthy of discussion, this paper will focus on the currency crisis and the Argentinean government’s role in this economic

America (U.S) has economically hit its highs and lows over its 2 ½ centuries of its existence, but none have been more surprising than the Great Depression period from 1929-1933. During first major low in society the stock market crashed due to citizen’s overuse of credit. This wasn’t the only problem there was also a great drought in America’s agricultural plains. Many farmers lost their crops and most of their land, creating a small scale famine in the U.S. People were laid off and people couldn’t provide for their family. One citizen during this time still had a vivid memory of these times,”In New York neighborhoods adults stood in so called 'bread lines,' children begged in the streets.”

Many investors believe that this means the United States will have problems repaying these loans in the future and will cause many economic problems in the future. The debt accumulated this much because of deficits in the national budget. These can be caused by new programs to help citizens or help the US economy. Tax cuts, military spending, and the economic stimulus package caused this national debt to skyrocket. On the USdebtclock.org website it shows our largest budget items are Medicare/Medicaid at $1 Trillion, Social Security at $886 Billion, defense/war at $583 Billion, income security at $303 Billion, net interest on debt at $224 Billion, and Federal pensions at $255 Billion.(usdebtclock1) These debts are large and spending on some of these programs must be cut.

The United States has been in debt since 1775, paying for the American Revolutionary War. Through many years, tremendous debt has built up. America is now at a total of $19 trillion dollars. There are many dilemmas dealing with our economy, this all starts with America’s debt. The government has overused its authority in regard to America’s national debt by erratic spending, excessive borrowing, and by ignoring the average tax paying American.

With the United States only now beginning to recover from the throes of the Great Recession, the good American worker (armed with nightmarish memories of mass unemployment and bankruptcy) generally views large amounts of debt in a negative light, with television pundits regularly criticizing the federal government for the $18 trillion of national debt. Entire generations of Americans have been conditioned to view debtors as moochers and failures, unwilling to work hard in order to earn their own money. This negative opinion of debt is further compounded with the historic negative effects of debt: complete loss of assets, homelessness, and bankruptcy. However, contrary to public opinion, the national debt—and, in fact, all debts—will act

The American debt clock sits at around 20.5 trillion dollars today, but when I.O.U.S.A was made America’s debt was at 8.7 trillion dollars. Obviously the United States debt is an ongoing problem that will one day implode and every single U.S. citizen will have to deal with it. America’s debt was initially caused by war, and more wars over the years made it increase and decrease. There has actually only been one time that the United States has had no debt, January 8, 1835. The debt of the nation cannot be blamed to any specific party, because the republican party and democratic party have both played a role in increasing the nation’s debt over the years. There are four major things that contribute to the debt: Budget deficit, saving

into a slump. Unemployment was on a huge rise and money was scarce and not getting any better. At

This paper will cover on the changes in the poverty rate from 1959-2013 and also the wages that you need to be over to not be consider poor. Shown in the chart above is the poverty rate from 1959-2013. As it is shown in the chart over the past 54 the poverty rate has significantly has gone down. It has gone down because education in the world has gotten about one hundred percent better than what it was back then. In the years 1970, 1974, and 1980’s the poverty rate spikes back up a little bit. The rate spikes because during those years our country went through a recession. A recession is a period of economic decline in which trade and industrial activity are reduced. This usually happens when there is a fall in GDP. The most recent recession happened in 2008, where we saw a decline in the real-estate business that the country still has not fully recovered from. During a recession the poverty rate would be higher because less people have jobs so they are not making an income like they used

Everyone loves something free. Stores advertise for free deals to bring people in, and "free" seems to have a good connotation about it, but what does free exactly mean? Someone once said, "Free cheese is always available in mouse traps." Well, mice love cheese right, that 's obvious; but a mouse trap is used to kill the mice. The free cheese is used as bait to get the mice towards the stuff they love, but they end up having to pay for that cheese with their life. In other words, something is never free. Someone somewhere has to pay for that free thing, even if it doesn 't directly affect you. The “free thing” being referred to in this situation is welfare, or “free” handouts for the needy people. The price is the rise of debt and

America was once known for being one of the richest nations, now facing a modern day depression. America starting noticing the economy going down during the collapse of the Lehman Brothers, and the global banking failure in 2008. This debt has become a burden amongst college students and the middle class Americans. This long lasting debt seems to be a drag and has no chance of getting better anytime soon.

The Central American crisis began in the late 1970s, when major civil wars and pro-communist revolutions erupted in various countries in Central America, resulting in it becoming the number one region among foreign policy hot spots in the 1980s. In particular, the United States feared that victory by communist forces would threaten the Panama Canal and would isolate the rest of South America from the United States if the countries of Central America were to be installed with pro-Soviet communist governments. Ruben martinez Raised awareness about the effects of the central american civil war on the mexican people through his literary works from crossing over, the kindness of strangers, and latino american taking a different path.

The heavy borrowing of the 1960s and 70s also however allowed countries to put in place unsustainable domestic policies. Many governments put in place populist policies that entailed using expansionary fiscal and monetary policies with little regard for inflationary risks, budget deficits, and foreign exchange constraints. Populism promoted growth and income distribution but did not address the risks of increasing debt. In addition to encouraging unsustainable policies, the low interest rates that Latin American countries became accustomed to actually discouraged saving which added additional fuel to the economic crisis.

Diane Lourdes Dick’s (2015) piece on “U.S Tax Imperialism in Puerto Rico” argues that U.S. domain over Puerto Rico’s tax and fiscal policies constitutes the destruction of Puerto Rico’s economic system. She states that “Puerto Rico’s ambiguous political status and historic lac of formal legal process for restructuring its public debts are partly responsible for a mounting crisis, which has inspired hand-wringing and speculation on Wall Street” (Dick 2015, p.8). Dick phrases this lack of input as U.S. tax imperialism, similar to that of Pierluisi and Backiel, since it is based on the argument that the island’s lack of a voice in its fiscal matters contributes to its fiscal status (Dick 2015). She states that the traditional narrative on U.S. policies presents them as “generous and benevolent compared to Puerto Rican tax and economic policies, which are portrayed as grasping and even guileful” (Dick 2015, p.7). However, she claims that the island’s current

In addition, in the decade leading to 1994, the government saw an increasing expenditure for various projects in the country. The result was an increased reduction in the funds of the government. Another more important factor was that the country experienced hyperinflation from 1985 through 1993. This period was also characterized by significant increases in debt loads of the financial sector, as well as the low oil prices that also contributed to the weakening of the Mexican economy (Mathur, 18). One would argue that the Mexican

With the large capital surplus largely arising from foreign investments to support the huge trade deficits in the Mexican current account, all seemed to go well for the Mexican economy until several political crises erupted and several macroeconomics mistakes were left exposed in 1994 which affected foreign investor’s confidence.