US Debt Crisis Essay

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

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