National Debt Problem
The National Debt is at an all time high and still rising at an alarming rate. We are expected to add another $9.4 trillion to the countries debt in the next 10 years. If we don't change the direction of the debt crisis soon, our generation is going to be the one that has to deal with it. The chart below shows how the national debt has grown from from 1940 to current time. It also shows a prediction on what the debt will be like in the years leading up to 2018.
Effect on the Next Generation
The debt that is building up in the country will not effect the people in power now. The United States has time to continue to build the debt with little negative effect. However, the negative effects will start to arise with the up coming generation. There are two major fears about the building debt. The first is that we will run out of people to buy the debt from us. The second is that foreign buys will not buy anymore treasuries because of the fear that the US dollar will rapidly drop in value.
Spending More Than We Have
The U.S has been spending more then we have been making and creating a big deficit since the Clinton administration. Just like the normal american over spending and can't be told not to buy something even if they cant afford it. Its like they have never heard of saving before spending. Like the Government we keep rolling over our debt and keep gaining more and more debt. Also like the government how long can this game of debt keep going before it catches up and bites us. The chart below shows how much the government spends verses how much they bring in. Its very obvious that we have a problem because we are spending more money than we have. This is why we have our national debt problem and why it continues to get worse.
How the National Debt Affects You
The debt can lead to slower economy growth and a weak job market. Debt in general makes the economy poor. The more the government has to spend on higher interest rates and other things like that the less they have to pay for building roads and tax incentives to small business's. We have also voted for more benefits than they are willing to pay for. These benefits cause higher taxes. Eventually things like social security wont be around do to the lack of money. Then the dollar won't be worth as much and people will start to not be able to afford stuff. All of America is going to have to make cut backs.
It's hard to imagine how much $17 trillion is. Here are some facts to help wrap your head around it. The actor, Tom Cruise, made $75 million dollars last year, which is a lot. However, to cover our national debt, he would have to make that every year for the next 14,000 years. Another fact is that if you stacked a trillion 1 dollar bills on top of each other, it could go around the equator over 380 times. Think about that 17 times! The last fact is that if we were to completely cut government spending and raise all taxes by 10% we could have our debt paid off in a year. The picture below show how much $17 trillion is in stacks of $100 bills.