The Influence of Debt on the Health of the Us Economy
The Influence of Debt on the Health of the United States Economy A healthy economy by most standards should provide for stable living as well as standards capable of improving. A healthy economy will allow room for growth and spending that will not create more problems than it has solved.
Debt in the United States economy has a grand influence; however, according to the Economic Policy Institute, most economists would agree that the effect of government borrowing on growth stress the importance of deficit, not debt. At the same time other economists have said that rising debt levels can affect economic performance in non-standard ways (Bivens J. & Irons J., (2010) Government Debt and Economic Growth, para 9).
Because the United States’ debt has continually increased, investors could choose to remove themselves from the equation, thus resulting in escalating interest rates. To keep investors in the equation and financing the current deficit the government has to guarantee to investors a higher return for their contributions.
It is no secret that debt without a solution can lead to crises; the negative effects show in the economy over and over. As deficits continue debt is more than likely to continue to rise to unsupportable levels; this will affect government programs like health care and Medicaid, Social Security, and disaster relief funding, companies will continue to go out of business do to less spending in the economy, thus placing in jeopardy more individuals and their employment status.
Debt holds a tremendous influence on the health and well-being of not only the economy but also the people in the economy that look to the government to make the right choices that will create and maintain a healthy and prosperous economy. Problems eventually need a solution to prevent them from creating more problems, debt in the United States is no different; there has to be a solution in sight to secure the health of this present economy and the economy of
Debt in the United States economy has a grand influence; however, according to the Economic Policy Institute, most economists would agree that the effect of government borrowing on growth stress the importance of deficit, not debt. At the same time other economists have said that rising debt levels can affect economic performance in non-standard ways (Bivens J. & Irons J., (2010) Government Debt and Economic Growth, para 9).
Because the United States’ debt has continually increased, investors could choose to remove themselves from the equation, thus resulting in escalating interest rates. To keep investors in the equation and financing the current deficit the government has to guarantee to investors a higher return for their contributions.
It is no secret that debt without a solution can lead to crises; the negative effects show in the economy over and over. As deficits continue debt is more than likely to continue to rise to unsupportable levels; this will affect government programs like health care and Medicaid, Social Security, and disaster relief funding, companies will continue to go out of business do to less spending in the economy, thus placing in jeopardy more individuals and their employment status.
Debt holds a tremendous influence on the health and well-being of not only the economy but also the people in the economy that look to the government to make the right choices that will create and maintain a healthy and prosperous economy. Problems eventually need a solution to prevent them from creating more problems, debt in the United States is no different; there has to be a solution in sight to secure the health of this present economy and the economy of