Essay on Unsustainable Debt

Within debt there are subtopics that can be debated. We have the poor and the people who are living in poverty. Poverty is seen as a big problem within America. “It is defined as the state of not having enough

Over 75 years later, we still do not have the freedoms President Roosevelt wished upon us. A specific freedom that still does not exist is “economic understandings which will secure to every nation a healthy peacetime life for its inhabitants.” There are still dozens of poverty stricken countries, known as Heavily Indebted Poor Countries (HIPC). These are countries that have a national debt that is unmanageable with traditional manners alone. The good news is that the Heavily Indebted Poor Countries Initiative began in 1996 to address this issue. The World Bank, the International Monetary Fund (IMC), and other creditors teamed up to reduce the debt of 36 countries that met strict criteria.

China has become a perceived threat to the U.S. economy because of the increasing trade deficit between the two countries, their ability to undercut production costs of similar products produced in the United States, and the amount of leverage that China has over the United States due to amount of money that has been lent by China. Although the United States has taken steps to close the trade deficit, such as convincing China to raise prices on their exports, there is still a considerable gap (Prasad). The United States government continues to print money that they simply can’t afford, therefore, relying even more heavily on China sustaining the value of their currency. Unless the United States is able to close the trade deficit and regain control of our economic flexibility, the problems caused by foreign countries owning our debt will remain eminent.

The United States does not have an obligation to help poor countries. Many believe that the U.S. has a moral or ethical obligation to assist countries who need it. The United States is viewed as the police of the world, defender of democracy, and body of countries who it chooses to align with. When it is said that the U.S. has an “ethical obligation” the definition of those terms vary from person to person. No one is obligated to do anything, people feel obligated based on their own values and beliefs. Although the U.S. has a high gross

In the documentary Life and Debt, it is explained through the stories of local people, the economic and social crisis of Jamaica. With Jamaica receiving mandatory loans from the International Monetary Fund (IMF) in 1977 because of lack of alternatives, Jamaica was promised meaningful development. Unfortunately, this only made the situation worse because of the extreme policies and foreign economic agendas that came with the loans, forcing Jamaica into even further debt. Therefore, it is my opinion that it is because of the policies and greed of the IMF and The World Bank that came along with the loans, that Jamaica is currently 4.5 billion dollars in debt.

The U.S. is close to national humiliation; we borrowed money during the Revolutionary War from foreign countries, but have no means to repay our debts.

Students High in Debts Crisis "The only good thing about student loans is that the day I die my children will not have to pay for them” (Block). The problem with everyone not being able to go to college is the cost of it. Many High school graduates don’t even think about going to college because of how crazy expensive it is. Many students drop outs later on due to not being able to keep paying and the ones who do graduates struggle in paying off their student loans for years.

Crippling student debt is stifling the growth of the United States economy because it inhibits graduates from being able to spend money on consumer goods and home purchases. One of the biggest decisions every high school graduate has to face comes at the time of applying to college. Deciding to go, and where to, is going to have a big impact on the student life, and in most cases a big factor for this is money. As an effect of that concern student loans were developed. For many students going to college in the U.S. comes with a very important economic decision.

Washington continues his warnings regarding the use of public credit and the establishment of permanent foreign alliances with other nations. He urges to use credit sparingly and underlines the importance of having a balanced budget. Washington also urges paying off the debts of wars in times of peace, in the form of taxes, so that future generations do not have to pay for a prior generation’s battles. Next he issues the warning, “It is our true policy to steer clear of permanent alliances with any portion of the foreign world.” This was mainly in his opposition with any alliance with France or Britain, as he did not want to be forced into a war that was not ours to fight. But Washington was realistic when he stated that temporary alliances may be necessary during “extraordinary emergencies” for the protection of the country.

The United States is one of the industrialized countries that offer a small amount of aid. ( Fact Based)

On one side of the issue the supporters of developmental aid believe that the United States is doing more than a great job by offering economic assistance to countries that need help to develop. These individuals are aware of the unfortunate poverty levels in many countries abroad. They believe that it is the duty of the American people to help reduce the poverty levels in countries in which people live with less than a dollar a day. In fact, some supporters believe that the U.S. is not offering enough support to the poorer countries. Many have

The USA exercises its foreign policy through financial aid. For example, scarcity relief in North Korea provides not only humanitarian aid but also a base for the development of democratic ideals and bodies.

Numerous developing nations worldwide are in debt, causing both financial and humanitarian issues, resulting in being unable to pay for their citizens’ basic needs. These basic needs include accessibility to sanitary water, healthcare and education. Debt in developing countries such as Tanzania got rapidly out of control in the 1970s and 1980s. This was when developed countries such as United States, United Kingdom and Saudi Arabia lent out billions of dollars to less developed countries, like Tanzania and Nigeria, at floating interest rates to increase the lenders’ revenue. This eventually led to the loaner falling into a debt crisis.

From the dawn of time, everything has some sort of value. Currency differs around the world, but one thing consistently remains the same, everything comes with a cost. As the world has progressed, currency has become more sophisticated allowing for accurate exchange and proper payments. Unfortunately, however, as the refinement of money has progress so has the accumulation of national and world debt.

During the 1990s, foreign aid declined largely due to three events: the end of the Cold War, the fiscal problems of the Organization for Economic Co-operation and Development (OECD) countries and growth in private-capital flows to developing countries. In addition, many anti-poverty advocates quixotically believed that by forcing creditors to accept loses, debt relief would remove the uncertainty associated with debt issues to