Effects Of Iousa On America's Debts '

I.O.U.S.A on America’s debts

The documentary IOUSA portrays America as a country that has become addicted to debt all the time. The documentary claims that U.S is almost falling from the top if the economy continues in the same trend. It is true the economic analysts in the country must consider certain issues affecting the economy, such as debts associated with use of credit cards. Insights given by IOUSA are one-sided, misleading and inaccurate, taking advantage of the fact that many Americans are ignorant of the economic issues. It is wrong for the documentary to claim that the national debt is a generational transfer. Everyone that owns government bonds will one-day die and the possessions can move to the children or grandchildren. The

Nobody purchases foreign goods in a supermarket, because the federal government has a budget deficit. Individuals buy foreign products because the increased dollar makes them cheaper as compared to local products. It is important to understand that, a high dollar still makes U.S exports expensive for those in other nations. The trade deficit means that there is a huge budget deficit or very low private savings or combination of both. If America is borrowing internationally, then the country has a low domestic savings, which in reality it is false.

The perception of IOUSA on the effect of debt on the young generation is wrong, because federal debt can increase or decrease the investments and wealth of the upcoming generations. It is wrong to use debt as the only measure of financial effect on various generations. It is only imperative to understand how debt interferes with the economy’s strength, especially when the local government borrows funds. It is wrong to measure the national debt using intergenerational burden. Despite taxpayers owing debt in a collective manner, some or even all also own the debt. It is a payment within and not across