The National Deficit

The National Deficit - The National Deficit: Americas...

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The National Deficit: America’s Superpower Status Reneged? Bryan Hamade 4/13/2008
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Hamade 2 Bryan Hamade Professor Moon Macroeconomics 13 April 2008 America has been the world’s largest superpower for approximately the last one hundred years. During this period of time, Americans have seen everything change in many different ways. Americans witnessed the grandiose triumph of World War 2, the massive achievements by NASA landing Buzz Aldrin and Neil Armstrong on the moon, and lest not forget the rise and fall of Communist Russia which enveloped the nations in a Cold War lasting over fifty years. At the end of the Cold War, America prospered becoming the world’s largest superpower. All of this has mad Americans overly confident in the nation’s successes leading them to believe they as a nation are the best in every category. Unfortunately for these idealists, this is not the case whatsoever. Flash-forward to 2008 and America is no longer the richest nation; some could even make the argument that America is also no longer the most powerful nation. Today’s America is a debt ridden nation stuck in a messy conflict in Iraq on the verge of a possible recession with a currency declining in value, a huge national deficit, and many other horrible problems facing it none of which have easy solutions. The most glaring problem with America today is the national debt. America has always floated some debt, but for the most part the debt has been under control. All was decently fine deficit wise for a nation of America’s size until the 1980’s. During this period of time, the national debt skyrocketed from seven hundred eleven billion nine hundred twenty-three million dollars in 1980 to two trillion four hundred eleven billion five hundred fifty-eight million dollars in 1990. Basically, if you took the debt in 1980 and multiplied it by three you would still be shy of the 1990 number. The large increase in the national deficit is mindboggling on so many levels. Where did all of the debt come from is the most glaring question. There really is not much of a good answer at all. The debt also climbed during the 1990s, but not in such an extreme way. The debt merely doubled in size during this time. Once George W Bush took over the presidency in 2001 the economy began to take a turn for the worse. The debt at that point was five trillion seven hundred sixty-nine billion eight hundred eighty-one million dollars which already is a far higher number than it should be. At this
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Hamade 3 point, 9/11 happened and took a devastating toll on the US economy. The attacks on the World Trade Center and New York by Islamic terrorists caused the New York Stock Exchange to remain closed for six days; when it reopened, US stocks had lost over one trillion dollars for the week. This was the longest period of time the New York Stock Exchange had been closed since the Great Depression. With the stock market in peril and the United States in shock, George W Bush decided it best for America to
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The National Deficit - The National Deficit: Americas...

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