US Debt Crisis explained
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Uploaded by coolguyintheblue on Aug 9, 2011
US Debt Crisis explained in short animated video.
- 34 likes, 1 dislikes
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Isnt the only way out of this really for the US to become more productive by investing big money into relevant industries/jobs/edu in order to become high-end producers of valuable commodities, technologies etc? That way it can pay off its debt and become a proper contributor to the global economy.
enormousforce 1 week ago
@convener777 The problem with the US is there's not enough expansion to make the amount of debt you have plausible.
iamyourgod1988 3 weeks ago
@convener777 It's the knock on effect as it where, you need profits from interest to allow your company to expand if it should lend out money to others, if it's a financial institution of course. What happens with expansion you need a greater workforce to be able to cope with that expansion = more (what the Brits call income) taxable income for the government.
iamyourgod1988 3 weeks ago
@convener777 I reckon the reason for this debt crisis is actually due to the extreme development of capitalism. Interest rate might contribute to something wrong, but it's just a part of the problem. The big problem is when you don't need too many of your citizen to produce all you need, you get large unemployment. This unemployment is the driving force of having a large government spending. US is going towards communism. EU is the next. Maybe not this time, but within 100 years, who knows.
hjuniform 3 months ago
@hjuniform. Yeah I agree with that. Maybe fixed rate that does not increase will be a better solution to the problem
convener777 3 months ago
@convener777 interest rate exists because, in my point of view, you need to get something back for helping someone who needs your money to help themselves. I think it is totally reasonable.
hjuniform 3 months ago
@hjuniform. It's against their religion (Qua ran) to charge interest rate. That's why living expanses are cheap. Why can't this world live without interest rate?
convener777 3 months ago
when you 1. have a high level of democracy, and 2. can produce enough goods with only a small amount of people, socialism will step out to replace the old system. But it won't happen until global economic collapses. In my point of view, i think I will be able to see that day coming in my life time.
hjuniform 3 months ago
@convener777 actually arabic countries have interest rate, they just don't admit that they have. They do it in a covert way. This world can't work without interest rate.
hjuniform 3 months ago
My input, don't know if it will matter, but I was thinking why not get rid of interest rates all together. From my understanding of the way recessions are is that interest rates are the enemy. Arab countries don't have interest rate, don't see them seeking loans to be bailed out. These are my thoughts.
convener777 3 months ago