In Debt We Trust free essay sample

In Debt We Trust It is common knowledge that public debt is one of the basic topics in macroeconomics. Debt is actually a certain amount of goods or money (mostly money) owed by one side to another. There are various types of debts, from personal debts to debts by the government. The US public debt is the amount of money owed by the United States federal government to creditors. National and individual debt combined total well over $10 trillion. The video notes how credit card companies quarry on college students and others too young and dumb to realize how easily a spending spree can change their future. Meanwhile, the working poor are mislead into loan schemes with huge disciplinary consequences for late payment, including ever-more-frequent home foreclosures. Middle-class families end up in deepening debt just trying to maintain the same home-and-car-owning lifestyle their parents could afford. Where there used to be a penalizing but real last-ditch escape route, Republican lawmakers recently shoved through restrictions making it almost impossible for individuals to declare bankruptcy. We will write a custom essay sample on In Debt We Trust or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The national debt is the total amount of money the United States Treasury Department has borrowed and currently owes to the federal governments creditors. These creditors are mostly comprised of the public, including individuals, corporations, as well as state, local and foreign governments. They also consist of various government trust funds, such as Social Security and Medicare. Additionally, they include the Federal Reserve, mostly in the form of treasury bonds, bills and notes. Currently, the U. S. national debt is estimated to be $8. 5 trillion. This ever-growing figure brings with it several social and economic implications. Therefore, the national debt is a frequently debated topic that has over the years produced various schools of thought on how the U. S. government should manage it. In order to understand how the national debt could ultimately affect future generations of the United States and the different ways the government can best deal with it, it is first necessary to discuss its’ history. According to the latest statistics, as of 2006 the sum that Federal Government owed to its citizens and overseas creditors was 5. 2 trillion dollars. This sum does not include money, owed to social security fund, and by various corporations. If the sum owed to Social Security Trust Fund is included, then the debt rises to an amazing figure of the $8. 5 trillion dollars. That means that in 2006 the expected interest, paid on the debt will be 364 billion dollars. This sum of money is actually greater than the GDP of several independent states. The average interest rate for the US public debt is 4% annually. Certainly, the debt of $8. 5 trillion dollars is a heavy load for the US taxpayers, as they are forced to service it. US certainly own the greatest amount of money, and American economy certainly has difficulties struggling with such a deficit. It is clear that any other country would simply collapse under the weight of such bonds. One fact has still to be taken into consideration: US economy is the most powerful one today, consequently. If calculating the public debt in percentage of the GDP, it equals 67%. This figure is actually normal for most developed countries, and USA hold 35-th place in the world according to this scale. I find it funny that the film speaks of the impending financial doom that we’re currently experiencing. I find it sad that we’re going to bail out these financial institutions that are doing this. We just sent them 700 billion more because they have us so enslaved that we could not live without them. So when their greed finally got the best of them good old GW and the folks we elected†¦ bailed them out by sending them more of our money for free! When will it end? The answer as of right now looks like never!