Debt In America

The first sign of debt in America started in 1929. The American stock market crashed. The Great Depression was caused by misbalanced distributions of wealth, war debts, increase in tariffs, excessive production in agriculture and industry, and doubts of the stock markets. As a result, spending dropped, and as production decreased, unemployment increased. Most of the countries businesses failed. Americans were led to buy on credit which led them to falling into debt. Half of the country’s industrial production dropped. More people became homeless, and government workers became unpaid because the United States treasury’s account balance decreased. By 1933, nearly 13 million people were unemployed. President Roosevelt helped dig the country from …show more content…
The government’s acts of spending more than they receive has played a huge role in the increase of the debt. The government borrows more money by selling securities and treasury bonds. The country receives money to remain stable. The more debt increases the higher the cost of living, the slower the wage growth, and the more burdens that are created on the people. “Achieving meaningful debt reduction will require a comprehensive plan that addresses the major drives of our debt. Reforming the tax code, slowing the growth of entitlement spending, reducing other spending, and helping to grow the economy are all necessary to put debt on a downward path over the long term (Bloomberg).” There are many causes of the increase in the national debt. Money being spent on the wars in Iraq and Afghanistan has contributed to the United States debt. Revenue decreased due to the increase in unemployment. Unemployment benefits, food stamps, medical care have caused debt in America. The Bush tax cuts cost the country $1.6 trillion. Healthcare entitlement, Medicare prescription drug benefits added $300 billion to the debt. Obama’s economic stimulus added $800 billion to the national …show more content…
The world relies on each other for economic support. China is losing control of their economy. “China would not call in its debt all at once. If it did so, the demand for the dollar would plummet like a rock. This dollar collapse would disrupt international markets worse than the 2008 financial crisis. China's economy would suffer along with everyone else's (Kimberly Amadeo).” “A decision by China to sell off massive positions of U.S. debt would send the American economy into a downward spiral, harming not only the value of China’s investments, but also China’s export-driven economy (Kenneth