Why can't the United States pay off its debt?
Sorry if this is a stupid question, but can't we just print enough money to pay off whatever we owe? And who are we in debt with? If you need any more information, tell me and I'll gladly try to better your understanding of my question.
Has every country paid back their debts to the United States from WWII?
The United States did not have a war loan program in World War II and all debts run up incidentally during the war (mostly under the Lend Lease Act) were written off in 1945.The term “war debt” is still floating around because it wandered into popular culture in the 20s and 30s and is still floating around eighty years later. It was because of the bad feeling between the United States and various foreign nations over war loans that President Roosevelt decided not to use that method of financing in World War II. Lend Lease replaced it.While Lend Lease is still described as a loan program by some, there never was any intention on Roosevelt’s part to treat it as such. American critics, the Axis Powers, and the Soviet government all denounced Lend Lease as a giveaway. Essentially, Lend Lease allowed friendly countries to contract with American companies for war material, the United States would pay for it, and the foreign government promised to return what was left after the war. Mostly, the purchased goods were used up and written off by bookkeepers in 1945.
How will the US get out of debt?
What are ideas the government and Obama are thinking of? What things are they gonna do to make more money, and spend less? Or what are ideas YOU personally think would work??
Will America ever pay off its national debt?
America's National Debt stands at $11 Trillion however America's GDP (national earnings) stand at $13.84 Trillion. If you use the analogue of an average persons mortgage, the average person can take a mortgage out at least three times their total earnings and savings. If you look at it this way, America's debt is less than it's earnings in one year, making paying back such debt over several decades more than realistic however this would depend on balancing budgets and not incurring further debt.
What would it take for America to pay off its national debt in 20 years?
Paying off the national debt in 20 years is an unreasonable goal, and it would kill “the” major investment vehicle for Social security, pension plans and all kinds of investments requiring safe returns.That being the case, we have to do something about this madness.Because interest on the debt is recurring and interest rates are dependent on other things, it is important to act sooner, rather than later, to moderate the accumulation of debt.Raising taxes doesn’t solve the problem, because of the Hauser limit, and the growth limiting properties of government. The simple graphical explanation is here.Note that tax receipts are level at 20% of GDP no matter what the top rate is: 90% or 38%. So increasing rates will not help.So the answer to debt is to reduce spending. Reducing spending is anathema to one side of the aisle, so that half works against the national interest by vote farming on increased spending for entitlements.Here is our spendingAs you can see, ACA was a huge mistake and without that program we could actually have a shot at doing something about our yearly deficits.Mr Trump has moved his chips to the center of the table by lowering taxes, hoping for a big increase in overall growth. This has precedent in the Reagan administration where growth front to back reached a historic 73% increase during his term. That kind of growth would go a long way to erasing yearly deficits.In the meantime, government should be singled out for outrageous salaries.And BTW, this guy offers a sure prescription for failure and massive out of control debt.Our income tax system is almost totally dependent on rich people and creating more rich people. 70% of all income taxes are paid by the top 10% on only 38% of all income.So if transferring wealth is a moral issue, then creating more wealthy people is moral as well. But that isn’t the sanders plan, is it?Ole Trumpie has the right plan, if we allow him to implement it. How can we doubt a business man with a track record of making money. Especially when compared to socialists whose plan is to destroy prosperity.