The Uk National Debt Crisis

The Budget and Economic Outlook: Fiscal Years 2010 to 2020. N.p., 2010. Web. 18 Jan. 2014. .

Prior to the “Imperial Crisis” 1763-1775, Great Britain had a few set backs all while carrying the world on their shoulders. France was quickly moving out of North America and Spain was out of Florida, all while loosing power, allowing for Great Britain to only move up. After about one hundred years of continuous war, Great Britain had found themselves sinking in a pile of national debt due to the fact that they borrowed money by collected taxes to reduce or try and stabilize the debt they had already piled up. Another problem that arose was that the British taxpayers demanded and received many tax cuts, which reduced government income, only reducing the spending. Limiting spending only hurt Britain more, because it was very tough to decrease the disbursement when you are the biggest world power and have the responsibility to maintain a large army and navy, all well protecting your colony from the growing of large, powerful enemies.

You may be asking yourself how america got in so much debt well it starts like this for example the capitol building ran out of light bulbs. The company selling them sells a 6 pack for five dollars, but since they are the government the lightbulb company charges them 30 dollars for it, but that's only 30 dollars compared to the 4 trillion dollar budget well add on buying overpriced paper, pens, pencils, tools, plans, ships, and

According to George Greenville, Great Britain is in such large debt because America is constantly asking them for support. Britain believes America should pay the combined debt from war and from America’s own need for protection. The colonist’s greed has allowed Parliament to impose these taxes on the colonies because they are still technically under British rule.

The U.S. national debt is currently $18 trillion dollars and it is rising fast. The national debt today is the highest the U.S. has ever seen. In George Washington’s Farewell Address, he declared the U.S. should avoid going into debt. If the nation end up in a deficit, that the debtors were responsible for paying off the debt so that it doesn’t burden the future generations. Like the rest of this advice in his Farewell Address, the nation ignored it. The ideal goal right now should be to stop the debt from increasing anymore because it is impossible to stop the debt from increasing and expect to pay it off in this generation.

The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total

As with most loans, the US national debt comes with an interest. Interest paid for the debt in 2009 is $383 billion dollars, or about 20 percent of the country’s total tax revenues (“Financial Audit: Bureau of the Public Debt’s Fiscal Years 2009 and 2008 Schedules of Federal

The healthcare and social security programs, and the defense budget expense are only some of the few causes towards the government debt. Out of the many causes towards the debt, there are a few in which have caused the most debt. Two of those, are the tax cuts that happened while George W. Bush was in term, and the Iraq, Libya and Afghan wars. These two situations are part of the reason that government is facing large debt. As the debt continues to grow, it will affect people greatly. Interest will become high in order to start paying off the government debt, plus while the debt is still high, jobs will be limited and salaries will continue to be rather low. Also, "Increases in interest rates will cause borrowing to becoming difficult at all levels, including those for individuals, corporations, and mortgages," (Investopedia). Along with the government debt, education throughout American is huge issue as well. The Brown V. Board Education was a case in which declared laws establishing schools for African American and white students to be unconstitutional. After many years, there are school systems that still separate the

If there is one thing that is known about the national debt, it is that it goes hand in hand with Millennials. It is a shame to think that our country's debt will be forced onto the younger generation, and we will ultimately be the ones who have to fix the situation or deal with the consequences. To be clear, the term millennial usually refers to someone who is in the 18 to 34 age bracket. Millennials are also the first generation after the baby boomers. We are now facing a time when the national debt is growing faster than the American population, and this affects everyone.

Many economist view this current student loan issue in the same realm as the home mortgage crisis. In 2008 The mortgage crisis put the American economy into the biggest recession it had seen since the “Great Depression”. An economist by the name of John T. Harvey is highly regarded for his work in economics. Harvey attended the University of Tennessee, where he received a doctorates degree in economics and political science, and has now taken on the role as a Professor of Economics at Texas Christian University. Harvey wrote an article published on Forbes.com titled “Student Loan Debt Crisis”, where he breaks down the main intricacies of student loan debt.

The third category, spending and interest, accounts for the littlest of the three categories. In lament terms, Social security, military and healthcare account for the majority of our budget. This is no surprise because Social Security and healthcare are both mandatory spending (services our programs we rely on) and the military is discretionary spending (services or programs we rely on), and as stated above, this accounts for the majority of our spending, thus our debt. We rely on these services on a daily basis, and the baby boomers continue to age, the cost spends on social security and Medicare will continue to grow. The same goes for healthcare. As healthcare continues to be costly, the amount spent on Medicaid and insurance providers will continue to grow as well. After reading and understanding where the money is spent, when I took the Concord Coalition’s Federal Budget Challenge, I had a better realization of how little things can improve the deficit in big ways.

“Blessed are the young for they shall inherit the national debt”(Herbert Hoover). This is a quotes from Herbert Hoover, 31st president of the United States. What the quote is saying is that the debt the country is building up at that time, will be dragged down to today causing problems. A national debt is when a country is borrowing more money than they are making and this has been the problem of the U.S since the founding of our country. This seems to be a problem for us, it seems that we want to spend, and spend, and spend, more money than we can make to achieve something or to satisfy our own needs. This is screwing us over in the long run, causing us to slowly mess up or country's economy. Over the growth of our country the debt has decreased

After various changes to the economic tax and interest rate, CPHP have conducted and compiled research into current public spending. The results show that there has been a dramatic reduction in the level of public spending in the UK.

Blyth defines austerity as “the ‘common sense’ on how to pay for the massive increase in public debt caused by the financial crisis”, which comes primarily through the elimination of government services. People knowingly take on debt with the intention to then pay it off-- before the financial crisis of 2008 people took on debt to pay bills and banks took on debt to make money by leveraging. When the crisis hit, the government felt the banks were “too big to fail” (because a crucial part of economic activity in the US is tied up in liquidity of the largest banks) and bailed them out. When a person’s debt becomes too high they pay it down with income rather than continuing to spend and pump money into the economy, or “deleveraging”. In

The European sovereign debt crisis, which made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties (Haidar, Jamal Ibrahim, 2012), had already badly hurt the economies in “PIIGS”, Portugal, Ireland, Italy, Greece and Spain. This financial contagion continues to spread throughout the euro area, and becomes a dangerous threat not only to European economy, but also to global economy.