This is an open question. Do you believe that another event like the stock market crash will hapen in our lifetime and you believe that america will crumble since we have so much debt?
2007-01-23 06:47:59 · 4 answers · asked by kp 3 in Social Science ➔ Economics
No, not really. While the US has a great deal of debt, if you compare it as a percentage of GDP, it is actually only around 60%. This compares very favorably to other nations, such as Great Britain, France, Germany, and Japan, some of which are well over 100% of GDP in debt. While the debt should be paid down, it isn't really at a dangerous level right now from an economical standpoint. From a political standpoint, it makes a great talking point to throw in the other parties face.
What is important to look at is debt versus the national income of the country. Personally, if I have $2 million in debt but make $10 million a year, I am not that concerned. If I have $10 in debt and make only $1, I am far more concerned then.
2007-01-23 06:53:03 · answer #1 · answered by theeconomicsguy 5 · 1⤊ 0⤋
I would say that no to both. Historically the stock market has never dropped below 10-15% even in 1929. Its the recovery time back up to those previous levels that is important. Since the Brentwood treaty of 1948 the gold standard is our back up plan if things are not going well in the economy. Also remember that the debt is in dollars, it could be theoretically written off or paid off as quickly as the check books is opened up. But this is not wise because its counter effects would cause a severe inflation problems leading to a depression.
2007-01-27 06:32:58 · answer #2 · answered by Mark T 6 · 0⤊ 0⤋
USA won't crumble. Markets wither, but don't outright fall down and not get back up. There is too much demand, and that always makes a market rebound eventually.
There will be other crashes, perhaps a second dot-com crash or something else that is overvalued. It's pretty cyclical, every 7-10 years or so...
2007-01-23 06:56:59 · answer #3 · answered by MarauderX 4 · 0⤊ 0⤋
debt ? debt to who ? America has mainly debt torwards the federal bank of America. What are they gonna do, throw the door of each American down if America does not pay up ? I see the dollar going south though, wonder what will happen when the oil to back it up is gone.
2007-01-23 07:18:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋