How did America get into such debt in the first place? (unemployment, Clinton)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I sometimes wonder that how did exactly America get into such debt in the first place besides paying for the war and other few things. etc. Also, what happens IF America gets out of this debt?
I sometimes wonder that how did exactly America get into such debt in the first place besides paying for the war and other few things. etc.
it mostly came from lending too much money, too fast, to build and buy things at prices consumers couldn't afford to pay back over the long term.
This drove the economy for a while, caused everyone else to expand (thinking this was a long-term state of affairs), and loaded the banks with debt. This debt was then dumped onto the taxpayer and the federal budget in 2008-2011, and we created all this new debt to try and ease the pain of the banks.
we also have a system that is designed to run deficits in recessions, without any lawmakers having to take action. we are legislated this way, to automatically expand our spending on the safety net (unemployment, food stamps, etc,.) whenever the demand for these programs increases (during a depression).
Plus you have Medicare, which is a real problem for our future budgets.
Quote:
Also, what happens IF America gets out of this debt?
I sometimes wonder that how did exactly America get into such debt in the first place besides paying for the war and other few things. etc. Also, what happens IF America gets out of this debt?
I sometimes wonder that how did exactly America get into such debt in the first place besides paying for the war and other few things. etc. Also, what happens IF America gets out of this debt?
We had decades of debt caused by failed republican fiscal policies. Clinton was able to turn things around and created the largest surplus in US history, then once W came into office he threw the wildly successful Clinton plans in the trash and went back to the failed republican policies again leading to the biggest deficit.
The main reasons for the economic crash were from the tax cuts to the rich, outrageous military spending / the wars, and handouts to the large corporations.
If we just simply ended the wars, slash the bloated defense spending, return the tax policies back to the very successful Clinton era plan the economy would turn around very quickly, but the republicans are hellbent on making sure this doesn't happen.
Losing a sense of identity and purpose (making instead of taking), hence the desire to be more like European countries, also without any identity or purpose....other than being excellent nanny states.
I sometimes wonder that how did exactly America get into such debt...
You voted for all the wrong people.
Quote:
Originally Posted by Blackandgold51
Also, what happens IF America gets out of this debt?
You won't, so stop worrying about it and learn how to deal with it. Your National Debt will exceed your GDP for the rest of your natural life, and your standard of living and life-style will suffer because of it.
You could take the easy way out, and demand that the budget be gutted. You will suffer, but only for maybe 6-7 years, perhaps a little longer, maybe until the end of the decade, but that wouldn't be as bad as suffering for the rest of your life.
The average american consumer (the middle class) wants to live as if they are upper class.
The size of the average family home went from 960 sqft in 1950 to 2400 sqft in 2008. The average number of cars per household went from 1.3 in 1970 to 2.3 in 2010. The middle class goes to starbucks every day, owns multiple flat screen TV's, goes on expensive vacations and saves very little. The average middle class family of four will willingly go into debt to live in a 2400 sqft house instead of living in the 1000 sqft home that they can afford.
Politicians act the way we want them to act, and the middle class in America flat-out cannot handle money. We have a government that mirrors the average middle class citizen, which is a very scary thought.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. etc. Also, what happens IF America gets out of this debt?
