World History Essay

Submitted By tbertchie
Words: 949
Pages: 4

Taylor Bertchie
Writing Project Six
World History

The United States economy will be our buggest downfall of the 21st century. With our unemployment rate at its all time high it has an effect on everything. We are in the middle of a Retail Apocalypse and our country is still outsoucing while our debt is in the trillions. The united states debt is at an all time high. With the sum of all outstanding debt owed by the Federal Goverment, it is more than $16 trillion. We have the largest debt in the world for a single country. A large portion of the debt is money that the goverment owes to itself because of borrowing from large entitlement programs such as Social Security and the Medicare. Debt holders want larger interest payments to compensate for what they percive as an increasing risk that they wont be repayed. As of september 2012, foreigners held $5.455 trillion or roughly one-third of the U.S. debt. Many of the foreign holders are investing more in their economys rather than paying back the U.S. it also does not help our debt when we outsource products to countires over seas who owe us money. With the United States not making advanced technology products needed, companies end up buying them in other countries. The transfer of production over seas has weakend the nations job creation engine, crippled its ability to bounce back from recession and also eroded the ability for our country to invent the products and medical advances of tomorrow, To solve these issues, we need to make it profitable for companies in the United States to employ workers in this country so we can produce the goods needed to control foreign trade just like other nations are doing. We are forfeiting our manufacturing and industrial base. Soon enough wie will be left with few-to-none American owned factories that will make our nation completly dependent on other countires for work, resources, and a fair standard of living. Inability to find work means the inability to purchase homes, spend money, and profit companies leading our country into a Retail Apocalypse and increasing the unemployment rate. U.S. economy is falling apart right infront of our eyes. incomes are declining, taxes are going up and goverment dependence is at an all time high. The increased unemployment rate can have self-perpetuation negative impact on businesses and the economic health of the country. According to the Bureau of Labor Statistics the percentage of th U.S. labor force that is employed has been steadily falling since 2006. The top 10% of all income earners in the Unites States are still doing well but most consumers are either flat broke or drowning in debt. Big retail chains depended on large disposable incomes that are no longer available making the companies closeunprofitable stores. The middle class is shrinking and there arent nearly as many jobs as their used to be. The only work that has increased is part-time because it allows employers to reduce cost of a diminished benifit package or does not provide hem one at all. We are a nation that is in an advanced state of decline. As long as the financial market is okay, our leaders arent too converned about the suffering everyone else is going threw. Unless U.S. congress steps in, about $85 billion in massive spending reductions will hit the the Federal Goverment, doling out furloughs to much of the nations 2.1 million workforce.The more people unemployed means less people pay taxes or have spending money which helps boost the economy through tax. Not being able to be frivolous means some businesses will have to cut prices which can result in…