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How does the US economy sustain itself?
By Rose | June 13, 2008
jac514kie asked:
Considering the large foreign debts and a perceived lack of manufacturing exports, concretely and concisely how does the US economy balance its checkbook?
Evan
Considering the large foreign debts and a perceived lack of manufacturing exports, concretely and concisely how does the US economy balance its checkbook?
Evan
Topics: US Economy | 14 Comments »
June 14th, 2008 at 12:39 am
Gred and lies
June 14th, 2008 at 10:44 am
It does NOT
June 16th, 2008 at 1:47 am
it doesn’t
we are just lucky the place hasn’t fallen apart yet.
June 19th, 2008 at 11:26 am
with social security.
June 21st, 2008 at 12:30 pm
we are a service economy… everyone pays to get information on how to be efficient. Also US rules the Worlds entertainment buisness. Music is our #1 export!
June 23rd, 2008 at 6:21 am
Taxes, the backbone(food industry),etc
June 24th, 2008 at 8:13 pm
Just a guess, but probably by forcing the world to supply us with goods and materials dirt cheap, via our military and political might.
June 25th, 2008 at 1:30 am
we don’t balance the books, that’s why our country’s debt increases by 1.8 billion dollars a day…..yes, a day
June 25th, 2008 at 10:41 pm
through exploitation of other countries and ‘globalization’ nonsense.
June 28th, 2008 at 7:22 am
Credit is the American way.
June 28th, 2008 at 11:56 am
With the national debt growing at a phenomenal rate the key term everyone should consider and understand is “unsustainable”.
Does this help any?
July 1st, 2008 at 7:38 am
Why are the only exports manufacturing? It is a macro economics question therefore “balancing our checkbook” does not translate real well into government finance. The government creates the money, therefore they do not necessarily need to worry about debt.
Basically the US borrows money from itself to pay off the debt America owes itself. The US owes most of its debt to the US. That is why their is such a debate over how bad the debt really is. It is a fact that national debt is better for a country than surplus, but how much debt is the question.
July 2nd, 2008 at 5:47 am
taxes –
we’re taxed on wages, we’re taxed again when we spend the wages, those businesses that get our money have to pay income taxes, and said company pay taxes again when they pay employee to work – so we can spend our already over-taxed dollar.
Basically we’re keeping eachother afloat.
July 2nd, 2008 at 6:39 pm
On the first part, the debt doesn’t matter. Countries are still willing to lend us money. So apparently it doesn’t matter to them. Relative to GDP it is a smaller debt than many other countries have.
As far as manufacturing, our labor is too expensive to legitimize manufacturing most goods here. We and the rest of the world gain from specialization and trade.
The US economy finances itself by borrowing, whether it be domestically or internationally through government bonds and t-bills.
Bottom line, the “problems” with the economy have been blown out of proportion. The US is in no real jeopardy.