Why does it matter to the U.S. that its debt is nine trillion dollars?

Answer 1

it doesn't matter because other countries owe us over 140 trillion!

Answer 2

Can you imagine the interest paid on 9 trillion dollars worth of debt? This is money that could've been going to other programs, helping the poor, feeding the hungry, helping the jobless, etc. Heck, it could be saving for social security for people my age and younger instead of spending all of it before we can get to it.

I would assume having that much debt has a big affect on the value of the dollar too.

Answer 3

Because eventually we (the U.S.) will have to pay for it. When are government deficit spends, the U.S. uses its mighty reputation to borrow money from U.S. citizens or even other countries. The U.S. then uses a portion of the money obtained from the GDP (or the success of Americans and businesses) to help pay off the debt. In the situation we're in, U.S. citizens spend more money on foreign products rather than U.S. products. Thus, we develop a deficit. So when the U.S. cannot pay off their debt to foreign countries in form of cash, the government sells off government owned properties or (like the sell of shipping port areas to the UAE) authorizes the sell of contracts to foreign countries. The sad fact is that this option is better than the next: which is increase taxes.

So in a nutshell that is why the national debt is so important.

Answer 4

Its basic supply and demand--the more dollars that are out there, the less valuable they are relative to everything else, including other currencies and things we import, most importantly OIL. You also have to finance the national debt, which means paying interest on it and now believe it or not about 40 % of taxes go to paying interest on the national debt that President Bush has run up with his war and his tax breaks for billionaires. You get NOTHING for 40 % of your tax money--no schools, no roads, no vaccines, not even military pay or anti - terrorism: NOTHING. So the balanced (in fact surplus) budgets run under President Clinton were very excellent, they made America more competitive, not less so. Too bad for America the supreme court made such an evil choice sticking Bush in office. He has dug a hole it will be very hard, if not impossible, to get out of.

Answer 5

It's the service on the debt (i.e., interest payments) that matters - as the debt itself increases, those payments become a larger and larger percentage of the federal budget, crowding out other uses for the money - like, actual government programs.

Answer 6

It's proof that the current administration is operating in the red and don't give a damn. Also it proves that the 13 trillion dollars surplus that was present when Bush took office was stolen for various reasons that no one is ready to admit to.......

Answer 7

Because it's costing the U.S. over $300,000,000 a year to finance that debt. $300 Billion dollars could help establish a universal health care plan in the US !! Wasted money...GD Politicians !!

Answer 8

Well what if you applied the scenario to yourself and you were grossly in debt. How would that affect you? Would you be able to do the things you want , maybe even your needs may suffer besides the wants? Would you be able to help anyone else if they needed it?

Answer 9

Your blatant lies about the ACLU is only protected by the same

Even a DOG does not bite the hand that feeds them

Answer 10

it matters because because as the debt increases, foreign investors will become more and more reluctant to buy US bonds, will have to increase the interest we pay