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US Debt Crisis Essay

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DEBT CRISIS The US Debt crisis is a familiar phenomenon. The fact the nation experienced a decline in federal deficits does not necessarily mean that it is no longer under a public debt. The apparent decline in federal deficits is a good indicator towards stability; however, there is need remedy against an entrenched economic challenge. In particular, according to Leincht, 2014, the author of the article the Economic Decline and American Dream, he notes that fiscal imbalances caused the 2008-2010 economic recession. Accordingly, this was the worst recession after the Great Depression because it plunged the nation into losing hundreds of million dollars and over 70million jobs. A Plethora of fiscal policies was put in place to ensure “economic …show more content…

This is a question that many Economists including Leicht ask themselves because of the widening inequality gap and poor wages rates. Leicht, (2014) narrates that corporate profits have been increasingly tremendously; however, wages for workers remains in the same margins as they were before the recession. The effects of the crisis are eminent following the widening social inequality gaps. Harris, (2014) agrees with Leicht, (2014) regarding the issue of social inequality. Harris notes that debt crisis affects a larger population disproportionately especially the poor and men of color “it has pernicious, tenacious consequences.” However, there is hope because Leicht (2014) points out that access to credit is easier now compared to how it was in the last two decades. This was achieved through deregulation of financial markets and consolidation of banks in order to offer their customers better incentives to access credit. In retrospect, access to credit empowers those worse affected by the social inequalities and injustice to catch up with the rest of the middle class. Houle, (2014), on the hand, proposes that social scientists should be concerned about the caveat between rising debt crisis and social inequalities and stratification. So that those in lower social classes are not overburdened with the debt crisis leaving the rest of the population in the

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After the Progressive Era ended which allowed many middle-class Americans to prosper, Americans faced economic turmoil when the Great Depression hit in the 1930’s. Many suffered hardships like losing their jobs or having their businesses shut down which was very difficult. Despite the challenges, the United States has managed to become one of the world’s most leading economical nations in the world, closely competing with eastern nations like Japan and China. But what induced this economic boost? Was it influenced by the stress of war?

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Evaluating this article, it is very informative and helpful in helping one who is in debt to individually find a solution. This article, although not focused on the entirety of this social problem, demonstrates a perspective of solution for an individual. Comparing this article with the others, it relates to the article shown above, however; focuses more on how the individual can help their debt rather than how to solve the student debt crisis all throughout

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In today’s world, with all the technology that is readily available, finding information that is creditable can pose as a challenge. With social media and everything being online, it seems as if anyone from everywhere can post whatever they think, whether it is deemed to be accurate or not. Using the topic of national debt of the United States as a guide, I was able to analyze plausible sources and compare them to inaccurate sources. Journalist, Brandon Greife, in his article, “Liberals are Losing the National Debt Argument,” elaborates on the topic of what liberals are having to say about National debt. Greif’s purpose is to tell readers about what liberals are doing and why it is the wrong way.

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During the 1980’s there was no stable economy as there were constantly economic recessions, expansions and a constant problem of unemployment. During the 1980’s, “the national debt increased from $9 billion in 1980 to more than $2.8 trillion in 1989” (Trescott, Page 157). With this constant increase in national debt, American citizens began having to pay more money in taxes, in addition to prices skyrocketing. Although the economic recession ended in 1982, followed by an economic boom, there will still a constant fear of spending more money on the country rather than the families needs.

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Both World Wars and the Cold War undeniably took a part in this, but America’s spending habits are the true culprit for this dilemma. In 2017 alone, the budget deficit was approximately $666 billion. According to Henning Bohn (2010) in his essay regarding The Economic Consequences of Rising U.S. Debt provides statistical proof that the national debt has become a problem. In just two years, the ratio of public debt to GDP

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The easiest way to deal with this current debt crisis is to continue raising it like it has happened for years. An article titled “6 Consequences if the Debt Ceiling is Raised,” by Alex M. Parker mentions the cuts or discontinuations of government

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Through terrible decision-making and utter ignorance, the government of the United State of America has over-spent itself into a deep chasm of debt. In the next coming days, congress will be voting on whether or not it should raise the current debt ceiling from $18.1 trillion to $19.1 trillion. If Congress chooses to increase the debt ceiling, the U. S. government would be able to pay back the loans that it took out this previous year, but risks more overspending. If Congress chooses not to raise the debt ceiling, it is very likely that the Federal Reserve will run out of funds by mid-November. This will cause the U.S. to lose credibility with some of its creditors, and it could also create an economic disaster.

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Americans are embracing facts of inequalities and wage control, which has been a drawback in the American economy in the past, yet new policies have reduced inequalities by passing a law back in 2007 to raise wages, that is “Congress passed the first increase in the minimum wage within a decade” (574). That same embrace has the middle class preparing for the future by planning new strategies to educate their children about the dangers of debt to income ratio, gaps between social equality, and political power among the wealthy gaps. Also, unbalanced monetary stimulants, which have no power of motivation for some whom are after the American

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There is many people that go to college, but because of the cost they don't get through college. The elevated costs of college cause not only students to struggle paying for college, but also to struggle financially paying for college when they are done. In many cases, after graduating, young adults who don’t find a job will become poorer, increasing the gap between the rich and the

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Student loan debt loads have been spiraling, doubling over the last decade, and the enrollment rates of young people from lower socio-economic groups are rising far slower than middle and upper groups. Governments must recognize the renewed public investment in post secondary education is an economic and social imperative. 6.7 million borrowers in repayment mode are delinquent (Snider 1). The sad fact is that many lenders aren't exactly incentivized to work with borrowers. Unlike all other forms of debt, student loans can't be discharged in bankruptcy.

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