With 18 trillion dollars in debt and growing, America’s economy is not in good condition. Since the recent crash of 2007, America’s growth was half that of what economists predicted ”Debt Ceiling”(“Ron Scherer”). In 2007, banks were loaning to nearly anyone who wanted a house. This caused the prices of houses to rise. The market began to fall (I won’t go into that) and it left many without jobs or homes. The government did a last resort action, inserting 800 billion into the economy. This may have fixed a short term problem, but it’s adding to a long term one : debt.
Who’s to blame for the debt? The simple answer is not just one person, but rather multiple people and two parties. The two largest spenders were George W. Bush and Barack Obama(The latter did borrow more). Both of these people borrowed money and never payed it back. Neither party
…show more content…
However, if debt reaches it, it has consequences. If the ceiling is breached, hyperinflation ensues, causing massive amounts of money to become worthless, an example being Germany in 1918. You would need a wheelbarrow full of their old currency to buy a single loaf of bread. 30,000 of them would be worth roughly about 1 American dollar. No country has gone past that point, so anything happening after that point is pure speculation.
One such speculation is that the world would reset its currency globally. The world would begin using the same currency, and all debt would be reset. Another way is a global debt reset, where all current debt becomes non-existent. The worst possible way that could happen would be an economic collapse, where the government loses power and the world slips into anarchy(this last way is next to impossible, and comes from hyped-up drama that you’d find in a Hollywood movie).
But what can America do to stop any of this from happening in the first place? The answer comes in several steps, and is rather