United States Economic Crisis
The state of our economy.
The Great Depression 1930's
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United States 2012
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Natonal Debt. What is it?....And how does it effect me?
The National Public Debt is how we measure the financial obligations of the United States federal government.
Who do we owe the money to? Most of the debt is owed to ourselves. Some is owed to other nations.
How do we owe ourselves money? Good question! The US goverment get most of its money from taxes paid by citizens.
each year that we spend more then we get in taxes we create a deficit. The total of all the yearly deficits is the National Debt.
The current national debt is around 14 trillion dollars. Each year it grows by almost 1 trillion dollars.
How does this effect me? It can effect alot of things in your life such as: Taxes ,Interest Rates, cost of goods. You name it. It effects it. The economic state of the us goverment has devastating effects for not just us but other nations as well. We are the backbone to the world markets. So if we had a total collapse so would the rest of the world.
What can be done to fix this? There is no one right plan to fix the problem many plans will work that currently exist. A better tax plan could help. There are proposals for The fair tax http://www.fairtax.org this is a effective way to create more revenue. Some have proposed a Flat Tax. Not a bad idea either. The best plan to cut debt is to cut spending. As harsh as that seems to people. We need to cut programs Welfare, Medicare, Social Securitiy,Disaster Relief, and Public Education. I know sounds insane right? We also need to stop spending federal tax money on state problems. Every state has its own local taxes and resources to handle these issues. It is not the job of the federal goverment to redistribute wealth and the problems of the people are just that. When we misuse funds it is a abuse of power and a act of treason. Federal Taxes are deisgned for Military, Development , Expanding of our land, and National Crisis.
What happens if we default on our debt? The truth is no one really knows. We have many people speculating to what will happen. But a nation like ours has never existed before. So we dont know what would truly happen. Other nations have went bankrupt, but we are accountable to no other nation so its hard to say how they would try to enforce there owed share of the debt. War is not really a option ,as well as nations like Japan who need are raw materials and resources. So we wont know for sure til it happens.
Who do we owe the money to? Most of the debt is owed to ourselves. Some is owed to other nations.
How do we owe ourselves money? Good question! The US goverment get most of its money from taxes paid by citizens.
each year that we spend more then we get in taxes we create a deficit. The total of all the yearly deficits is the National Debt.
The current national debt is around 14 trillion dollars. Each year it grows by almost 1 trillion dollars.
How does this effect me? It can effect alot of things in your life such as: Taxes ,Interest Rates, cost of goods. You name it. It effects it. The economic state of the us goverment has devastating effects for not just us but other nations as well. We are the backbone to the world markets. So if we had a total collapse so would the rest of the world.
What can be done to fix this? There is no one right plan to fix the problem many plans will work that currently exist. A better tax plan could help. There are proposals for The fair tax http://www.fairtax.org this is a effective way to create more revenue. Some have proposed a Flat Tax. Not a bad idea either. The best plan to cut debt is to cut spending. As harsh as that seems to people. We need to cut programs Welfare, Medicare, Social Securitiy,Disaster Relief, and Public Education. I know sounds insane right? We also need to stop spending federal tax money on state problems. Every state has its own local taxes and resources to handle these issues. It is not the job of the federal goverment to redistribute wealth and the problems of the people are just that. When we misuse funds it is a abuse of power and a act of treason. Federal Taxes are deisgned for Military, Development , Expanding of our land, and National Crisis.
What happens if we default on our debt? The truth is no one really knows. We have many people speculating to what will happen. But a nation like ours has never existed before. So we dont know what would truly happen. Other nations have went bankrupt, but we are accountable to no other nation so its hard to say how they would try to enforce there owed share of the debt. War is not really a option ,as well as nations like Japan who need are raw materials and resources. So we wont know for sure til it happens.