31 Dec US debt crisis in 2012 and the rest of our problems
I should preface this blog post by saying that I have a fairly limited knowledge or understanding of economics and tend to glaze over a little when the financial news comes on the TV. I’m going to go a little serious, and I’m not going to make you feel warm and fuzzy.
Now that this is out of the way, what the *fluck* is going on in the US? This is a fair question at a general level really so to be more specific, what the *bleep* is wrong with the US financial system? More to the point, why are people spending so much time worrying about individual wealth and not the national debt.
I was reading a
properly old December 2009 edition of Esquire magazine and stumbled upon an article about the US dollar. This piqued my interest because I’ll be moving to NYC in February. Now, I realise that the US economy has been going down the proverbial toilet for a few years now so I’m not looking to tell you anything you don’t have an understanding of already.
What I wanted to touch on though were the questions that run through my mind when contemplating and pondering this particular conundrum. I’m not so much focussed on the situation itself so much as I am how it got so bad.
- When did it become an acceptable notion to have not billions but trillions of dollars of debt. Are when and how does government ever expect to pay this debt back?
- If debt is so damn high, shouldn’t taxes be raised? I realise this is not a popular move but let’s get real people, would you rather pay more taxes, or be in a permanent state of debt where you’re dollar buys you less each and every year?
Not actually a good idea, having read up a bit more it turns out that raising taxes has a negative impact on the economy such that the GDP
- Who decides the borrowing or debt level can safely increase? It seems to me that this is a decision that is above any national government or body. A decision of this significance should be escalated to a global level. as such a global board does not exist, the public should have a voice in making the decision to raise their national debt levels.