Why does The USA think its so rich ?

Question

When it has the biggest national deficit of any country. Currently standing at 01/30/2007 $8,688,193,398,145.10
At current the U.S. is able to get away with it because the world trades oil in dollars so all the world has to buy dollars to buy oil helping keep the country buoyant. This danger can be seen as just before the second gulf war sadam insinuated he would start trading oil in euros instead and almost over night the currencies that were not close before hit parity (no war or conspiracy answers please). Danger awaits and i think most people dont realise or don't care. What do you think?

Please note those answering buying power, that your buying power is directly linked to your currencies place in world markets No oil trade in dollars, the dollar crash, dollar crash no buying power.

I must commend everyone so far i love a good debate, but there is no need to mud sling peeps it is a genuine question and not ment to offend if i have i appologise

Answer 1

You are suffering from several common misconceptions. First, yes the national debt is a large-looking number, but that is because the US has a massive economy, and so most economic numbers relating to it are large. Debt by itself means little. Consider debt in context of the national income of 13.5 trillion, which spins off tax revenue of some $2.6 trillion, and the very manageable debt:GDP ratio, which is SHRINKING as the economy grows fast, the fed deficit quickly shrinks, and the budget heads toward likely balancing about the middle of next year. (What, you didn't know that? Why not?)

Japan has a much smaller economy than the US, but by now has greater total debt, a shrinking population, and a stagnant economy destined to enter a century of decline. THAT's a country in trouble.

2nd, the idea that the dollar will collapse if it is no longer the international unit of oil trade is a hysterical myth. No mainstream economists believes that, there is no theory to suggest it, it's simply vapor. There might be some impact on the exchange rate as certain interests unwind dollars, but it would wash out. By the way, there is little reason to expect that the dollar will lose that role anytime soon anyway.

But I'm not sure you understand what "rich" means. Wealth is in the actual real output of goods and services -- because that is what people need and value. The US produces by FAR more goods and services than any nation on earth (no other nation produces more than a minor fraction of what the US does.) Divide per person and REAL output per person is much higher in the US than elsewhere. If any country on earth can claim to be rich, the US is first in line, easily.

Answer 2

You want to point out our national debt as a weakness? Yes, in absolute terms you are right, it is an enormous number.
But as Joe Pesci would say quoting Al Einstein, "Everything's relative."

Our government debt is 38% of our GDP, whereas Japan's is 86%. The comparison against many European countries is not as extreme as Japan, but it still strongly favors the U.S.

The U.S. is an extremely wealthy country, although not the richest. (Look at both aggregate GDP, and per capita GDP)

However, you make a valid point about the threat to the U.S. dollar should oil be traded on Euros. However, wouldn't a side effect of this measure be an extremely large increase in American exports? Perhaps aiding our weakening manufacturing industry?

Answer 3

First.
Your figures mean nothing,they could have been plucked from the air or they could have been massaged to strengthen your point.Of course they could also be correct.

Im sure the USA doesnt "think its so rich".A countrys wealth is simply a set of figures and the standards of which its people live.

We would normally recognise a nations wealth by its GDP,a sum of its material assets and labour force.
There are countrys awash with money,such as Kuwait,Russia,Iran and Dubai.However,this doesnt guarantee them to have the largest GDP.
We would consider the industrial assets,mineral resources,personal wealth,building property and functioning infrastructure all as components and measures of wealth.

With respect,I would say your comments are meaningless drivel ,regurgitated from some leftist anti iraq liberation website.

Answer 4

No, what's keeping the country "buoyant" is massive industrial, commercial, agriculture, natural resources, and last but certainly not least- Yankee ingenuity.

Total GDP 2005
(millions of US dollars)
Ranking Economy
1 United States 12,455,068
2 Japan 4,505,912
3 Germany 2,781,900
4 China 2,228,862
5 United Kingdom 2,192,553
6 France 2,110,185 a
7 Italy 1,723,044
8 Spain 1,123,691



PPP GDP 2005
purchasing power parity
(millions of international dollars)
Ranking Economy
1 United States 12,409,465
2 China 8,572,666 a
3 Japan 3,943,754
4 India 3,815,553 b
5 Germany 2,417,537
6 United Kingdom 1,926,809
7 France 1,829,559
8 Italy 1,667,753
9 Brazil 1,627,262

Answer 5

'Cas of TV.

The psychology behind feeling rich and being rich is a thin line. When a person see's the bling, cars, houses, it almost tricks the mind into believing that they live that way ... then they can get "Knock off's" at Wal- Mart ... and they live in total denial. This appeals to each individuals personal desire (marriage, sex, women, cars, power in law, power in military). The American public demands entertainment to keep the fantasy going.

Meanwhile the middle class is disapearing because of this denial.

Answer 6

nicely i will say this, I stay in So Cal. lots of the Jews that i be attentive to comprise prosperous. maximum of them have "White" collar jobs. You all be attentive to the usuals, they are the two legal specialists, docs or accountants. there is not any longer something incorrect with those professions. Being of partial Arab/Berber good, i've got not got a concern with them. because of the fact the announcing is going a number of my ultimate pals are Jews

Answer 7

Different perspective. It is assumed rich due the our high consumtion rate. We are judged by our needs and not our have or saved. In order for Capatilism to work and the value of money to remain it must move around. High Consumption makes this happen.If you need what you can afford then you can afford what you need.

Answer 8

well its plain to see that since bush has gotten into office and started iraq war that the united states is losing economic ground. when the euro was invented, it was invented on the basis of the dollar, and ratio was almost 1:1. now it takes 1.24 dollars to make one euro. meaning everything for a unitedstatesian in europe ( tahts me ) is more expensive. the dollar is going down, and certainly the us is in trouble. 2008 cant come fast enough.

Answer 9

The US thinks it's so rich because it produces more wealth than any other country. It can afford to borrow.

Answer 10

Crazy huh? The only thing the USA is rich in is diverse cultures and illegal immigrants !