What Happened America?
American Economics in the Early 1900's
America is looked at as a substantial economic super power. This title was really earned back in the late 1800's to the early 1900's. It was mainly caused by the industrial revolution which brought mass production and global economic expansion.After WWI,it seemed the height of the industrial revolution was met by devastating natural and man made disasters.The great dust bowl,for example, was a direct effect of the over production in the agricultural aspect of the economy.This caused a small depression due to the falling food prices(which was stemmed in the overproduction of crops and a decreasing demand for them),which in turn caused farmers to have to default on their loans,and therefore causing the bank to foreclose their farms.This shook the entire the economy.The debt crisis started to crumble and weaken the economy because investors were losing money,in turn,causing them to not be able to pay back the loans given to them to buy the stock they owned,and stock began to plummet.Finally,the economy fell apart.Unemployment grew and people began to lose everything.This whole event set up a major platform for where America is today,economically.
Franklin Roosevelt's "New Deal"
The economic distress was unbearable for the American people and one man proposed not a solution,but an economic painkiller to this problem,the "New Deal".This may have helped the spirits and hopes of the people,but the legislation has elements of socialism and doesn't appear to be sustainable,except through high taxation.The problem is,America's taxes have been reduced several times since this legislation,and dependency on these various social programs have increased.When there is an exponential relationship between the income the government revives(which is decreasing) and the demand for the programs(which is increasing) there is a deficit.
Projected Trend of Spending-Government Revenue
So Then What Happened America?
After the Great Depression,the new deal was changed a few times and some of the legislation were taken out.However,the main problem of the new deal was the idea that the government was there to provide to people,and with this a false sense of dependability,as well as a breed of socialistic people who believe that it is the government's job to provide for them.This doesn't mean that the programs that help people are bad,but they should ONLY be a last resort.The reason it should be only a last resort is simple;it wasn't built to support more than a small percent of people!However,another huge part of the problem with America's economy is the defense spending.
Military Defense Spending
This is one of the most influential reason for the American debt crisis.The military budget in the last ten years has been exponentially growing,thus putting a burden on the already stressed deficit.With taxes being decreased and bubbles (.com,housing,etc.) rising and popping,not to mention inflation,a growing defense budget,as well as a growing social welfare dependency,it is no wonder America is functioning off a deficit!The worse part about it is people don't want to pay the taxes needed to have everything they do,the economic security that the socialistic programs give.Instead,people just want to take and demand.
The dollar is dropping at an alarming rate and people ask themselves,"how is it that a huge economic country such as America could fall?"In fact,many don't want to believe it,but it is real.Legislation like the new deal has tricked people into believing this reality of a nanny government that will take care of them when they face economic failure.This belief is dangerous and only sets up a huge,hard crash that is now, inevitable.America is living well past their means and the many parts of the world economy are feeling the stress.Many take for granted their economic security and because it is all they have known,they can't fathom what it would be like without it.It would do people well to become more economically independent and innovative for the security of themselves and their family.
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