U.S. Debt: The Next Financial Crisis?
As the U.S. economy has mainly recovered from the 2008 Financial Crisis, with unemployment below 5%, inflation below 2%, and the stock market near all-time highs, there is growing concern about the huge amount of U.S. government debt, which today stands at over $20 Trillion dollars and 106% of Debt/GDP. Could this be the next thing to derail the U.S. economy, and in so doing, negatively affecting nearly every other country in the world? This paper reviews the size and scope of the U.S. National Debt in it’s historical context. There are three reasons to be alarmed about this, especially now. First, the annual budget deficit, which had been shrinking in the later years of the Obama administration, is once again on the rise. Second, the Repu... Ver más
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Journal of Economics Finance and International Business - 2018
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U.S. Debt: The Next Financial Crisis? application/pdf Text http://purl.org/coar/access_right/c_abf2 info:eu-repo/semantics/openAccess http://purl.org/coar/version/c_970fb48d4fbd8a85 info:eu-repo/semantics/publishedVersion http://purl.org/redcol/resource_type/ARTREF http://purl.org/coar/resource_type/c_6501 info:eu-repo/semantics/article Journal of Economics Finance and International Business - 2018 https://creativecommons.org/licenses/by-nc-sa/4.0/ Español https://revistas.usil.edu.pe/index.php/jefib/article/view/221 Journal of Economics Finance and International Business Universidad San Ignacio de Loyola Publication 2 As the U.S. economy has mainly recovered from the 2008 Financial Crisis, with unemployment below 5%, inflation below 2%, and the stock market near all-time highs, there is growing concern about the huge amount of U.S. government debt, which today stands at over $20 Trillion dollars and 106% of Debt/GDP. Could this be the next thing to derail the U.S. economy, and in so doing, negatively affecting nearly every other country in the world? This paper reviews the size and scope of the U.S. National Debt in it’s historical context. There are three reasons to be alarmed about this, especially now. First, the annual budget deficit, which had been shrinking in the later years of the Obama administration, is once again on the rise. Second, the Republican tax reduction bill is estimated to add another trillion dollars to the overall level of government debt in the next 10 years, even with higher GDP growth rates factored in. Third, the Trump administration, while slashing other areas of government spending (State Department, Environmental Protection Agency, and more) is once again seeking major increases in military spending. This scenario is strikingly similar to the early 1980’s, where deficits soared as a result. The paper also offers some solutions as to what can be done to bring it down to a more manageable level (or at least reduce it’s rate of growth). Like many things in economics, the “best” solution is to find ways to return to levels of historical GDP growth rates (3% and above). Stuart, Paul Debt Deficit Debt/GDP Ratio GDP Growth Taxes Crisis G18 G15 1 Núm. 1 , Año 2018 : August Artículo de revista U.S. Debt: The Next Financial Crisis? Journal article https://doi.org/10.20511/jefib.2018.v2n1.221 2018-06-22T00:00:00Z 10.20511/jefib.2018.v2n1.221 72 83 https://revistas.usil.edu.pe/index.php/jefib/article/download/221/414 2521-8301 2522-3054 2018-06-22 2018-06-22T00:00:00Z |
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Journal of Economics Finance and International Business |
| title |
U.S. Debt: The Next Financial Crisis? |
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U.S. Debt: The Next Financial Crisis? Stuart, Paul Debt Deficit Debt/GDP Ratio GDP Growth Taxes Crisis |
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U.S. Debt: The Next Financial Crisis? |
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U.S. Debt: The Next Financial Crisis? |
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U.S. Debt: The Next Financial Crisis? |
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U.S. Debt: The Next Financial Crisis? |
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u.s. debt: the next financial crisis? |
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U.S. Debt: The Next Financial Crisis? |
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As the U.S. economy has mainly recovered from the 2008 Financial Crisis, with unemployment below 5%, inflation below 2%, and the stock market near all-time highs, there is growing concern about the huge amount of U.S. government debt, which today stands at over $20 Trillion dollars and 106% of Debt/GDP. Could this be the next thing to derail the U.S. economy, and in so doing, negatively affecting nearly every other country in the world? This paper reviews the size and scope of the U.S. National Debt in it’s historical context. There are three reasons to be alarmed about this, especially now. First, the annual budget deficit, which had been shrinking in the later years of the Obama administration, is once again on the rise. Second, the Republican tax reduction bill is estimated to add another trillion dollars to the overall level of government debt in the next 10 years, even with higher GDP growth rates factored in. Third, the Trump administration, while slashing other areas of government spending (State Department, Environmental Protection Agency, and more) is once again seeking major increases in military spending. This scenario is strikingly similar to the early 1980’s, where deficits soared as a result. The paper also offers some solutions as to what can be done to bring it down to a more manageable level (or at least reduce it’s rate of growth). Like many things in economics, the “best” solution is to find ways to return to levels of historical GDP growth rates (3% and above).
|
| author |
Stuart, Paul |
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Stuart, Paul |
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Debt Deficit Debt/GDP Ratio GDP Growth Taxes Crisis |
| topic |
Debt Deficit Debt/GDP Ratio GDP Growth Taxes Crisis |
| topic_facet |
Debt Deficit Debt/GDP Ratio GDP Growth Taxes Crisis |
| citationvolume |
2 |
| citationissue |
1 |
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Núm. 1 , Año 2018 : August |
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Universidad San Ignacio de Loyola |
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Journal of Economics Finance and International Business |
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https://revistas.usil.edu.pe/index.php/jefib/article/view/221 |
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Español |
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Article |
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https://revistas.usil.edu.pe/index.php/jefib/article/view/221 |
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https://doi.org/10.20511/jefib.2018.v2n1.221 |
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2522-3054 |
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10.20511/jefib.2018.v2n1.221 |
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