What is the huge trillion dollar debt the U.S. owes for?
I dont understand how U.S. owes money hardly at all. After all the money we have spent and lent to countries around the world and helped build up militaries and loaned all kinds of money and marshall plan so on, how does this figure?
Answer:
for the past.40+ years we have been spending more money than we take in. the problem is really that
Republicans like to cut taxes, Democrats like to spend. you put both of them in power over 40 years and we get a Government that likes to spend and cut taxes, which is not good for trying to make a surplus. Republicans try to not piss of democrat moderate voters by not cuting spending and Democrats don't want to piss off Republicans moderates voters so they don't increase taxes. only during the dot com year did the U.S have a surplus.
so the U.S. takes out loans called "bonds" in order to pay for everything. usually it is sold to the citizens but hte majority is sold to other countries, currently China owns the most U.S. bonds which is scary because if China asks for their money back, the U.S. will be in financial troubles.
the thing is, the U.S. taxes ALOT less than Canada and most european countries. the U.S. trys to stay out of people's hair. Republicans sometimes will whine about us being amoral once in a while but the idea is lower tax=government should do less. the problem is our government doesn't do less. we have a military in many countries (S. Korea, Afghanistan, Iraq, Guam, Phillipines, Cuba, etc.).
as you mentioned we give out loans, but we really don't have the money to give out these loans, and usually the money we give out are loans itself.
if we had a genius like Marshall, then our economy would be great. the Marshall plan was a stroke of genius, and is different from any other loans we have given. we give Europe money on the condition that the spend that money in the U.S. it really means we give u money, that you should pay back, and all the money we give you go back into our economy.
but alas, we are in so much financial trouble that when i have to start paying taxes i'll probably be paying back these loans. i wish i can stay in college forever
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Answer:
for the past.40+ years we have been spending more money than we take in. the problem is really that
Republicans like to cut taxes, Democrats like to spend. you put both of them in power over 40 years and we get a Government that likes to spend and cut taxes, which is not good for trying to make a surplus. Republicans try to not piss of democrat moderate voters by not cuting spending and Democrats don't want to piss off Republicans moderates voters so they don't increase taxes. only during the dot com year did the U.S have a surplus.
so the U.S. takes out loans called "bonds" in order to pay for everything. usually it is sold to the citizens but hte majority is sold to other countries, currently China owns the most U.S. bonds which is scary because if China asks for their money back, the U.S. will be in financial troubles.
the thing is, the U.S. taxes ALOT less than Canada and most european countries. the U.S. trys to stay out of people's hair. Republicans sometimes will whine about us being amoral once in a while but the idea is lower tax=government should do less. the problem is our government doesn't do less. we have a military in many countries (S. Korea, Afghanistan, Iraq, Guam, Phillipines, Cuba, etc.).
as you mentioned we give out loans, but we really don't have the money to give out these loans, and usually the money we give out are loans itself.
if we had a genius like Marshall, then our economy would be great. the Marshall plan was a stroke of genius, and is different from any other loans we have given. we give Europe money on the condition that the spend that money in the U.S. it really means we give u money, that you should pay back, and all the money we give you go back into our economy.
but alas, we are in so much financial trouble that when i have to start paying taxes i'll probably be paying back these loans. i wish i can stay in college forever
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