Government Debt
The U.S. national debt has surpassed $19 trillion dollars. What is the aftermath of having such a massive debt? The U.S. has such a massive debt that it's not only going to have an impact on us. These levels of debt have never been seen since the aftermath of World War 1. We are encountering the largest debt in our nation's 240-year history.
The United States has remained in debt for many years now. We have gradually been increasing our debt. Most of the debt is due to funding wars and the creation of expensive new programs. Obama's budget is packed with a wish list of expensive new programs, especially a giant health care reform plan. When the government creates a temporary program to meet a temporary need it rarely eliminates it when it is no longer in need of, therefore creating a larger debt. According to Friedman (2016), “ One-half of our current federal debt is due to guns - in general, to waging wars”
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will face many consequences in the years to come due to our reckless spending and borrowing. According to Friedman (2016), “ We face a dramatic erosion of U.S. economic and financial standing, raising the risk of skyrocketing interest rates and a crash in the value of the dollar” (353). The collapse of the dollar can throw the world into a global depression. The United States is literally about to go broke and every country will pay the price. According to Amaral, P. (2010), “When the system collapses and it inevitably must, inflation will run wild in the U.S.” (pg. 10). People can also expect interest rates to rise. When interest rates rise everyone will suffer. As a matter of fact many people believe that still isn't going to be sufficient to diminish the debt. According to Campbell, C. (2009), “Government Accountability Office estimates that by 2040, interest payments will absorb 30 percent of all revenues and entitlements will consume the rest, leaving nothing for defense, education, or veterans' pensions” (pg.