One Nation Under Stress In Debt
The United States of America is recognized by many people as the land of many opportunities. The United States of America is the country where many people from all over the world would want to begin a new chapter of their lives. Although, America is known for providing opportunity, it also carries a heavy load of deficit of its own. The I.O.U.S.A.: One Nation under Stress, in Debt is a film that unfolded the four deficits that can potentially expose a danger to the country and its people. The four main deficits are budget, savings, trade, and leadership. The budget deficit is the estimated amount by which the expenses exceeded that assets or revenue. As quoted in the film, by 2007 the estimated total Federal debt is $8.6 trillion dollars.
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In terms of owning a house, Americans spend more money than they can take home. Some people debated that if the federal government wants people to save more, then they should create more money. But the only problem if the federal government creates more money, the value of dollars will go down. The Federal Reserve is the primary force in determining money supply. Their goal is to help stimulate economic growth and keep inflation at high (I.O.U.S.A, 2011). This presents a danger in Fiscal stability because if the government makes more money and instead of putting the money in the savings, or use it to pay debt they will use it for something less …show more content…
When President George W. Bush came to the seat the debt rate was 5.6 trillion dollars. A year later, America witnessed a horrific attacked that led the President to send troops to Afghanistan and Iraq. When Bush's first term ended interest rate decline. Resulted in dollars begin to decline against other currencies (I.O.U.S.A, 2011). The total federal debt during President Bush era is 7.5 trillion dollars. The only Federal can pay are some of the medicade, medicare benefits and the rest is up to people. All the other parts will be close and out of business. It would take America many years to pay the loans or to even lower it
In terms of owning a house, Americans spend more money than they can take home. Some people debated that if the federal government wants people to save more, then they should create more money. But the only problem if the federal government creates more money, the value of dollars will go down. The Federal Reserve is the primary force in determining money supply. Their goal is to help stimulate economic growth and keep inflation at high (I.O.U.S.A, 2011). This presents a danger in Fiscal stability because if the government makes more money and instead of putting the money in the savings, or use it to pay debt they will use it for something less …show more content…
When President George W. Bush came to the seat the debt rate was 5.6 trillion dollars. A year later, America witnessed a horrific attacked that led the President to send troops to Afghanistan and Iraq. When Bush's first term ended interest rate decline. Resulted in dollars begin to decline against other currencies (I.O.U.S.A, 2011). The total federal debt during President Bush era is 7.5 trillion dollars. The only Federal can pay are some of the medicade, medicare benefits and the rest is up to people. All the other parts will be close and out of business. It would take America many years to pay the loans or to even lower it