Essay On China Debt

The current national debt is $18.6 trillion and growing. China is the largest holder of American debt, owning $1.3 trillion of U.S. Treasuries. With China owning nearly 10% of America’s debt it owns a larger percent the debt than the American citizens own in the form of notes and bonds. In a Pew Research Center survey American’s largest concern in China is the amount of debt held by China. American citizen’s concern over the amount of debt owned by China is caused the historically high national debt, America’s involvement in the China Sea, and China’s increased buying of American debt. Alexander Hamilton was the first United States Treasury Secretary. As secretary, Hamilton analyzed the American economy and reported that in the year 1790 the national government was 75 million dollars in debt. Alexander Hamilton was a

The government created tariffs and taxes in order to financially secure the debt. At the time of Hamilton's plan to back foreign debt through taxes, Thomas Jefferson was also working to eliminate the national debt by paying it off. In 1794, an uprising called the Whiskey Rebellion resisted the higher taxes that would eliminate the national debt. While the government easily stopped this armed insurrection, it created a lasting legacy on the government’s ability to raise taxes and pay off the debt. Just as America was founded to avoid the high taxes that suppressed the citizens of England, the citizens of the new nation also resisted taxes created by the American government. Although the government was met with resistance to creating taxes, the debt continued to decline until the first World War. The war created large amounts of government spending and put America in large amounts of debt. The second World War put America under an even larger amount of debt, but following the wars the debt reduced to a stable level. During WWII the debt rose to