Is America slowly moving towards 3rd world status?
2007-09-30 09:57:39 · 5 answers · asked by Anonymous in Social Science ➔ Economics
They don't understand because Americans are too busy spending money they don't have, maxing out their credit cards, taking equity out of their homes, watching reality shows, getting their butts laid off and going bankrupt!
The latest interest rate cut just signed the death certificate for the US dollar, as far as I'm concerned. Household debt in America today is higher than it was before the Great Depression. Frightening! The American economy is headed for a steep fall. The next recession could make the early-'80s recession look tame!
2007-09-30 14:25:37 · answer #1 · answered by Anonymous · 0⤊ 1⤋
America is losing it's status as an economic super power but that is hardly the same as becoming third world. Europe lost their status but is still a pleasant place to live.
The Government debt is less than it was after WWII, and is more than it should be but not a unbearable burden. The trade deficit will go away as the exchange rate shift and we start exporting more. The effect of our spending spree is that billionaires in foreign countries will own more US assets instead of US billionaires, but that will matter little for ordinary people.
2007-09-30 16:38:45 · answer #2 · answered by meg 7 · 0⤊ 0⤋
The dollar has been worth "nothing" for a long period of time, since we moved away from the gold standard actually. But it doesn't mean America will be a 3rd world country at any time in the near future. If the countries we are indebted to asked for a repayment of all debts we'd be screwed, but I don't see that happening.
2007-09-30 12:49:58 · answer #3 · answered by Modus Operandi 6 · 0⤊ 0⤋
Well u lot are just stupid!, we need to take a look at the economic indicators inorder to make such an judgment, look at the philips curve divide it by the multiplier effect, known by kenyes and subtract it towards an supply side policy and refer it to the freedom theory, they are in the same situation which happened in the 30's privatasation.
2007-09-30 12:16:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Americans just look at their own personal situation and don't think about the effect of economic forces on their future.
2007-09-30 12:07:17 · answer #5 · answered by Pascha 7 · 0⤊ 0⤋