Not really sure where this went... So, as some of you may know, the US Congress/Legislature is in an emergency meeting right now, discussing what they're going to do about the nation's debt finally reaching it's output: 14 trillion. The way I see it, the economy of the United States looks like it's on its way to a collapse. A shutdown scenario described by the administration says the government would have to significantly cut staffing across the executive branch, including workers at the White House and civilian employees at the Defense Department, workers would be affected. Congress and the federal court system will also be subject to a shutdown. Well, I don't know about the rest of you, but I'm pretty worried... China wants the international currency to be their Yuan, they don't accept American dollars, not in Iran or a few other countries either. They predict that after "the economy collapses", the US will no longer be the superpower it once was, just as Britain, before, and Greece way before, and so on back. If a collapse is to occur, it's not going to be at a snap, it'll be like...20 years or so, but if/when this happens, superpower status out. When/if the US comes back it'll be just another country running around - China will be the big boy. I also noted, interested, last year I belive it was Russian prof. Igor Panarin predicted that the US would fall apart in 2010, well this did not happen, but basically the guy's saying if it does fall apart, a second American Civil War would break out, and then he described this image that's at the bottom of the page I know it's a pretty dramatic thought, but I figured it was pretty attention catching... But what about the collapse?
The concept of being a 'superpower' is, in my opinion, ridiculous in today's world. From the close of the first World War, we wanted to work towards preventing future wars. Of course, it didn't work, and we rekindled those efforts with the formation of the United Nations. Even now it's debatable whether it's done us any good, but part of the idea surrounding it (in my opinion) is putting all nations on an equal level to discuss issues and the like, thus removing any 'superpower' title. But that's just my opinion, really. Onto the 'economic collapse'. A deficit does not equal an economic collapse. Can the two be related? Sure. Is the US's deficit unreasonably large? Most definitely. But there are so many things that have led to our current economic recession (or depression, whatever you want to call it), I think people use the deficit as their scapegoat reasoning and are blind to the underlying causes. There's the housing bubble bursting, the ridiculous loan practices of nationwide banks, repealing the Glass-Steagall Act in 1999, and so on. I don't claim to be any kind of economist, I can't rattle off things that elude even the most clever, but I know that it's not simply the deficit that caused this. Personally, I think that some of the reasons might lay in the inherent faults of the capitalist system, but that's coming from a socialist, so take that for what you will. We're going about solving these problems all wrong. The government and the American people are looking at the deficit and the recession and their solution is to cut spending. In order to solve the issue of the deficit, I think we first need to pull out of this recession--and how do we do that? Government sponsored programs. That's what worked (at least partially) for FDR during the 1930's. You've got to spend money to make money. Get money in the hands of people, ease unemployment, and that will lead to them spending said money. That's the tried and true way of keeping an economy going: have the people spend money. But of course, people blame schools and welfare and Medicare and so on. And we start cutting programs to their barest forms, sometimes not even that. All that you are doing there is depriving people of what they need. Being a high school student I'm of course most outraged by the school cuts that we're facing--do I think we could use to trim our budgets a bit? Sure. But when classes that will help us in our future careers/get us into college are being slashed, I have a serious problem. Once we start seeing unemployment go down and the economy generally turning up can we start to tackle the deficit. Also keep in mind that economies go up and down all the time. Look at all of the panics and recessions and depression we've had in the past, and a Civil War has never erupted out of that. Look at all of the countries that have climbed out of far deeper holes. And even if the US breaks up a bit, I'm not too worried. It's too big anyway.
Your last comment amuses me, Misteh. :lolface: Also, I just noticed that your little...blur, I suppose, under your username means "my ultimate fault", or something to that effect. How do I know this? Hm... ...Hrm. I don't know much about the government or the economy or the "recession", but the government-sponsored programs sound like a good idea. But, what would some of these projects be? We don't particularly need any bridges or dams, do we? :/
I think it would be amazing if we could also solve the energy crisis along with it; start building solar & wind energy farms. Fix some of our biggest problems in one fell swoop.
If Africa can sustain itself on a debt that is so susbstantial that they've had for so many years yet are starting to experience rising GDP growth then why can't the 'superpower' America do the same? True cost of living is bigger and it is more public sector focused but the debt doesn't just mean we're all dead, but instead means that we have a lot o work to do in order to rectify it. Misty, you propose the same actions that our last Prime Minister, Gordon Brown, proposed. By investing into business and easing their financial worries such as reducing the tax they have to pay or give them subsidies, these will cause a 'trickle down effect' that leads on to the consumers (i.e you, me and everyone who buys stuff) which will stimulate spending and therefore causing growth in the economy to occur in principle, it can work and probably would be affective if properly monitored, but I do t think it was ever put into proper use before our current prime minister was elected. He's more in favour of cuts, which I doubt will work but we'll see what happens.
This is bad real bad Ok but you have to understand Hoover's Trickle Down Theory didn't go so well because if it starts at Business right. Then the expansion of it making now jobs then higher demand. People have money to spend well that didn't go so well. Because if we only focus on the business and only gove them money. I seriously doubt that will work because if they can't expan then ll that money they got will just be kept by them. And if the fedral gov does shut down then just hope you(Or your parents) paid their taxes on time. Because if they(Or you) didn't then the money they were supposed to get back... Well lets just say it won't come when they expect it you. Yes they(Or you) will get the money, just not when they(Or you) are supposed to. I mean what about FDR's pump Priming. Its starts with New Profits right. Then New Jobs are created helping Factory Expansion creating New Investments. And with those two we get Loans and intrests. And Increased Demand or means pretty much will help new Money Circulate. Which then in turnmay create New Government Funded Jobs. Pretty much like FDR's New Deal wanting people to spend so all of this can happen. But the firt one failed so even the Second New Deal is kinda looked at and blammed on him because now thanks to the New of the organizations made by it like the SEC(Secure and Exchange Commision) aren't doing their jobs. I'm not saying its wrong to think we gotta spend but we can't jus invest in big projects when the money is there right now. The energy crisis is a major on but to fund something like that will just cause the U.S. to become drenched in more debt. I mean hey if it works and we find a way that's juts one huge problem out of the way.
I am aware is a continent, and if we want to go into details we could talk about sub-saharan Africa, but that would be a waste and you simply reinforce my point. If an entire continent can keep sustainable living in the middle of problems such as corrupt governments, faminine, disease, and so on then why can't a country like America, that has a higher skilled workforce, infrstructure and acces to great amounts of knowledge be able to sustain its living standards? Logically it would be said that AMerica is in a far greater position to tackle its economic problems but has a greater fear of it because it is what they rely on. Africa focuses more on the primary sector, such as agriculture, meaning that even if their economy is in colossal debt, they still have the ability to meet their peoples needs like food, water and shelter.
When you look at the situation here in Europe,with all the banks going bust and countries borrowing from each other,it does make you go a bit.....well yeah. And so many people here are unemployed now....but it is getting better. And theres so much money in the world,we will probebly recover soon :/ (I hope)
This doesn't really surprise me at all. Our debt had been reaching "theoretical" limits for years, it had to give way eventually. I should really get around to getting myself a passport... lol
Checked the news this morning and saw the shutdown was averted...the question now is what was agreed on, what sorts of cuts are gong to be placed and how is this going to affect us in the long run.
Yes, I'm glad this crises was averted. I'm sure it's been a while since something political or budget-related has caught my eye. Then again, this affects the lives of...I guess everyone in the United States, if not the world. Hopefully, we'll pull through to the future.
