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Read this article on the U.S. debt. Select one of the other articles from the website, read it and post a 50-75 word summary of the key points. You may not copy anyone else's article, there are plenty of them on the website.
Tuesday, October 25, 2016
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77 comments:
Varsha Martin
2nd pd
US debts came from even before the residency of Reagan with making it higher as the president Clinton left the office.According to the debt clock we are experiencing more than 19 trillion dollar in debt in which will never be payed off. United states is the first country to have this much of debt followed by European countries.Most people say that the debt is because the way we make pennies which has a value of 1 cent being made in this country.The debt that started from Reagan went to the presidents like Bush, Clinton, and Obama for what they have done to save the country and economy.The lower the demand of something the lower we see in the value of the currency being used. There is no one to blame but other the social trust funds been used for our economy on what happened in the country.Even if the debt is high poor low you can't blame the presidents of United States for their work they have done to save our country form economic regression, wars, terrorism, and even the natural distastes.
Rizna Noorani
2nd period
Article: “US Imports: Statistics and Issues”
The US is the world’s largest importer. We import capital goods the most and the leading capital goods imported are computers and related equipment. We also import many consumer goods. The leading consumer good that is imported is cellphones. Despite being the third largest exporter in the world the US still tends to import products more than it exports; many researchers believe that unemployment is caused by this trend. The reason the US doesn’t just make everything here is because it would be a lot more costly.
Shaban Momin
4th Period
Article- "U.S. Federal Budget Breakdown"
In fiscal year 2017, the federal budget was $4.073 trillion, and the U.S. government will receive $3.632 in revenue. Because of this there will be a $441 billion deficit for October 1, 2016 - September 30, 2017. There are various types of spendings such as mandatory spending, discretionary spending, and military spending in which the government plays a role in some how. Mandatory spending is $2.606 trillion and social security is the biggest expense, at $948 billion. Military spending The discretionary budget is $1.467 trillion and majority of the spendings go towards overseas operations and military spendings. The Military spending is at $773.5 billion and the biggest expense for it is the Department of Defense base budget which is $523.9 billion.
Jessica Jose
4th period
Article- "Debt-to-GDP Ratio: How to Calculate and Use It"
The debt-to-GDP ratio compares a country's sovereign debt to its total economic output for the year. To find the debt-to-GDP ratio, you have to know two things, the country's debt level and the country's economic output. The debt-to-GDP ratio allows investors in government bonds to compare debt levels between countries. If a country's debt-to-GDP ratio goes up then it often means that a recession is on the way. That's because a country's GDP decreases in a recession. It causes taxes, and federal revenue, to decline at exactly the same time the government spends more to stimulate its economy.
Sharon Mathew
6th Period
Article: "What is the Public Debt?"
The definition of public debt is how much money a country owes to lenders such as other governments, individuals, and businesses. Public debt is commonly referred to as national debt, but that may not be entirely true for some instances because public debt may differ in countries based on debt owed by provinces, states, and municipalities. Public debt is the result of the government spending more money than they receive from tax revenues over a period of years. In the United States, public debt involves Treasury bills, notes, and bonds. Public debt can be confused with external debt because it affects external debt, but external debt is actually the money that is owed to foreign investors. Public debt is beneficial to countries because it allows extra funds to come in for the growth of their economy.
Wara Maknojia
Period 4
Article: "What is national debt?"
The national debt is the public and intragovernmental debt owed by the federal government. Two-thirds of the U.S. debt is the Treasury bills, note, and bonds owned by to the public. They include investors, the Federal Reserve, and foreign governments. One-third is the Government Account securities owned by federal agencies. They include the Social Security Trust Fund, federal public employee retirement funds, and military retirement funds. The federal government adds to the debt whenever it spends more than it receives in tax revenue. Each year's budget deficit gets added to the debt. The current national debt is greater than $19 trillion.
Jignesh Mehta
Period 4
Article: "The U.S. Debt and How it got so Big"
The U.S. debt is the biggest debt owed by any Fed Gov in a single country ever. In fact, the debt runs neck and neck with the European Union debt which contains 28 countries. The U.S. debt is mostly public debt which is owed to private investors and some which is owed to other government agencies within the U.S government. The biggest source of debt is Social Security and the debt is greater than the GDP of the Us and cannot be payed within 1 year. The debt grew as a result of Obama's economic stimulus packages and his tax cuts. Also, president Reagan's tax cuts from before and his increase in defense spending and medicare caused the government expenses to skyrocket. The debt will slow the U.S economy and the investors could demand higher interest rates to compensate for the risk of not getting repaid. At this time, the Social security trust fund will not have enough money to fund retirement benefits. As a result, our generation should not expect retirement benefits when we do retire.
Aneeka Khan
Period 4th
Article: "Sovereign Debt: Definition, Importance and Rankings"
Let's start off with the definition of sovereign, which basically means the national government, so in this context it means how much the national government owes. Governments like the U.S. usually finance their debt through bonds. In the U.S. people buy U.S. Treasury notes which are used by the government and are paid back to the people with interest. It's carefully measured and varies from who measures it. The U.s. debt separates public debt from debt owed by federal government to itself. Sovereign debt boosts the economy because when they spend more there are more jobs and more money for people to spend thus consumption increases. It's bad when country's debt is greater than GDP. It's also bad when the lenders start doubting that they'll be paid back.
6th period
Article: "What Is Sequestration? Causes and Impact"
Sequestration is when something is locked away for safe-keeping. From 2011 through 2016, the U.S. government used a sequester in place of the standard budget process because Congress couldn't agree on how to lower deficit. The sequester cut Federal spending by $1.2 trillion dollar over the span of 10 years. It impacted the economy by slowing economic growth due to the fact that government spending is a large component of GDP.
Article: "Deficit Spending: Causes, Why It's Out of Control"
Deficit spending is when purchases exceed income. When government spending exceeds government revenue, it creates a budget deficit. The government intentionally spends more than they take in because government spending helps the economy grow. What makes it seem impossible to lower deficit spending is that politicians are supposed to promote themselves as someone who will create jobs and help the economy, if they don’t, then they have no chance. Entitlements and mandatory spending consume much of the revenue in a year. Although the U.S. can afford deficit spending because the interest on debt is so low, many believe deficit spending should only be used to boost the economy out of a recession. If not, it can increase the debt. If the government has conflict and can’t agree, a shutdown occurs.
2nd Period
Article: "U.S. National Debt Clock: Definition and History"
The national debt clock is located in New York tracks the overall US debt. The national debt hits record numbers every time the country endures a recession or economic setback, such as after 9/11. Since most of the countries revenues comes from taxes, the government needs the citizens to pay taxes in order to get out of debt. The government keeps increasing the debt ceiling, even though it could possibly cause a fiscal crisis. If the government does not stop cutting taxes and spending, the government will accumulate more interest than they can pay for.
Jithin Joy
Period 4
Article: The Difference Between the Deficit and the Debt
A budget deficit is when spending is greater than the revenue received for that year. That's known as deficit spending. The national debt is the accumulation of each year's deficit. When revenue exceeds spending, that creates a budget surplus. A surplus subtracts from the deficit.The Treasury must sell Treasury bonds to raise the money to cover the deficit.
Marcella WInfiele
Period 6
Article: "What is the National Debt"
The current national debt is currently sitting at $19 trillion. If you divide $19 trillion by the number of people in the United States you will get the US dollars per person, which is owed. This is approximately $60,000 per adult, child, or person per year. The national debt has been increased due to various issues, such as, wars in Afghanistan and Iraq, trying to stimulate economic recoveries, and various financial bailouts. There are many ways to reduce the national debt, which are, raising taxes, major reduction in spending, or a combination of both. We as America need to seriously think how to reduce the debt to be good stewards concerning financial responsibility for future generations.
Ryan Hunter
6th period
Article: Debt-to-GDP Ratio: How to Calculate and Use It
As the article said, the debt is very capable of being paid off. However, just because something is possible does not mean it is going to happen. Politicians are mostly concerned about being reelected, and creating programs that would pay off that national debt would hurt their reputation, hindering their chances of getting reelected. I personally think that if debt can be managed so that servicing it only costs a certain static percentage of tax revenue, the debt will not be an issue. The US has a very good credit rating and likely will never be forced to repay its debt.
Sharanya Chander
2nd period
Article: How Does the U.S. Economy Work?
The article discusses GDP, supply and demand, inflation and deflation, fiscal policy, monetary policy, trade policy and financial markets as the 7 influencers of the economy. It also emphasizes that the most important part of the economy is consumer spending and the other three components are government, business and net exports. It also talks about how inflation is measured, with CPI or Consumer Price Index, but informs that the CPI can mislead and thus the Federal Reserve uses the core inflation rate. The article goes onto focus on the economic policies and discusses the federal budget and Federal Reserve. It also discusses some trade agreements such as NAFTA and how these trade agreements affect the costs of imports and exports.
Article: Economic Boom
What Is Meant by an Economic Boom?
The article, economic boom, states exactly what an economic boom is and how it occurs. The article also gives examples of economic booms allowing readers to recognize and understand them. An economic boom is the peak of a business cycle. The name says it all: business booms, economic activity rises, and output, productivity, and input increases. A boom is determined by rise in GDP, employment, and income. Booms usually last about 4 months and there have been only 33 of them since 1854. The cause of an economic boom is a rise of consumer demand because families become confident enough to buy things which typically is a good sign of a good economy. When booms end, however, recession begins.
Ashley Verghese
Period 4
Article:Budget Deficit: Definition and How It Affects the Economy"
The definition of budget deficit is when a country's government spends more than it takes in from taxes or other forms of revenue.It usually applies to the government more than the companies.They are financed through country bonds.Every year the deficit adds to the country's sovereign date.The deficit increases two ways.If the interest payments get high enough, the rates can create a drag on economic growth.Also higher debt levels can make it difficult for governments to raise funds.If it continues in a country the country can default. For example this happened in Greece in 2009 of the Greece debt crisis.
Meryl Zachariah pd2
"When does a country have too much Debt?"
The article primarily goes over the debt-to-GDP ratio and how to calculate and use it. Debt-to-GDP ratio "compares a country's sovereign debt to its total economic output for the year." The 'tipping point' to when economic growth will be dragged down would be if the debt-to-GDP ratio goes above 77%. It'll cost us 1.7% in economic growth per percentage it grows. To calculate this ratio, you need to know the country's debt level and the country's economic output. Despite the existence of public debt too, we would be using total debt in this case. The debt-to-GDP ratio holds the purpose of allowing investors in government bonds to compare debt levels between countries. Increases in this ratio would correlate to signals of recession. The debt-to-GDP ratio is an important indicator, but only to countries that can't issue debt in its own currency. The ratio is widely used despite its many faults since it is such a good indicator of a country's economic strength.
Mervin Cherian
Period:2
"Will The U.S. Ever Get Out of Debt?"
This article talks about how the best time to repay debts is when the unemployment rate is below 5% and when GDP growth rates are above 3%. The author believes that the government will never get rid of their debt since politicians are not willing to cut back on programs since this might jeopardize their political position. The tipping point where creditors start to worry is when the debt-to-GDP ratio exceeds 77%, according to the World Bank. The U.S. debt-to-GDP ratio is more than 100%. That means the debt is more than everything the United States produces in a year.
Farrah Au-Yeung
4th period
"Sovereign Debt: Definition, Importance, and Rankings"
https://www.thebalance.com/sovereign-debt-definition-importance-and-rankings-3306353
The article provides a lot of information about sovereign debt. Sovereign debt is how much a country's government owes. It often refers to how much the country owes to outside creditors, which is why it is often used interchangeably with public debt. The country with least percentage of debt is Wallis and Futuna, only consisting of 5.6% of their GDP, because they rely on traditional economic practices like farming. Japan has the largest debt percentage at 228% due to the government bond loans owed to citizens. Hence, sovereign debt allows us to see how much more a government spends rather than receives in revenue over time.
U.S. GDP: 5 Latest Statistics and How to Use Them
https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-how-to-use-them-3306041
The US GDP was 18.45 trillion dollars after the second quarter of 2016. The debt to GDP ratio is almost 105 percent, so the US debt is 19.285 trillion dollars, it remained at a safe level until the 2008 housing crisis. The real US GDP 16.583 trillion during the second quarter of 2016, which is the GDP without the effects of inflation. The US GDP growth rate was 1.4 percent since the second quarter of 2016, which means the GDP has grown 1.4 percent since last year. In 2015, the US real GDP per capita was 56,300. Comparing this with other countries can show how well off each country is.
Sean Liu
Per. 4
What is a Sovereign Debt Crisis?
https://www.thebalance.com/what-is-a-sovereign-debt-crisis-with-examples-3305748
A Sovereign Debt Crisis is when a country fails to pay its bills. For political reasons, a country's leader may ignore the indicators to the crisis and make the situation worse. The crisis often occurs when the investors loose trust with the country and believe debt default can occur. This causes the lenders to higher the yield to reduce the risk. So the crisis is displayed as a cycle. This had happened to Greece, Spain, and Italy and eventually led to the European debt crisis in 2008.
Lloyd Videau
Period 6
Article:What Are S&P Credit Ratings and Scales?
The S&P rating is a credit score that describes the general creditworthiness of a company, city, or country that issues debt. Best grading scale is AAA while D is the worse where highest is most likely to repay. S&P based rankings off of information from annual reports, press releases, and news articles. These rankings get blamed for the 2008 finical crisis.
Salman Bawani
Period 4
Article: U.S. Debt default Causes and Consequences
If the United States defaults on its debt it will no longer be able to borrow money pay for programs that people like such as Medicare and student loan payments. Also interest rates would rise as investors flee from the dollar as the worldwide currency. Even if people begin to thin that the dollar is no longer safe then the credit rating of the US will drop and will damage the entire world economy. Ways of avoiding this catastrophe are debt restructuring (negotiating lower debt payments), allowing the dollar to depreciate( makes debt worth less), or to just raise taxes and cut spending but this last option would be bad for growth.
Laura Rezmer-Cooper
Period 2
Article: What is the Public Debt?
Public debt is how much a country owes to lenders that are outside itself. Public debt is often used in change with sovereign debt. It is usually referred to as the national debt. Public debt is the collection of a country's annual budget deficits. It is a result of a government spending more money than they take in from tax revenues. The treasury departments manages a country's debt through the use of the Bureau of the Public Debt. The public debt includes the treasury notes, bills, and bonds. The average citizen can become an owner of public debt by buying saving bonds and TIPS. The public debt of the USA on January 29, 2016 was $13.7 trillion. When considering the short run, public debt is good because it is a good way for countries to get extra funds to invest into their economic growth. This is much safer for foreign investment. Public debt becomes bad when the government owes too much debt. When the debt starts to approach critical level, there starts to be a higher interest rate. Governments must be careful and find that sweet spot.
Idongesit Itauma
prd 6
Article: US Debt Crisis: Summary, Timeline and Solutions
On January 2016, the united states debt surpassed it's GDP. The last time this happened was in World War 2. A true debt crisis only occurs when investors worry that their debt cannot be paid. There is still a high demand for US treasuries due to us economic strength. The debt crisis occurred because of disagreements between Republicans and Democrats on how to cut the debt. The republicans focus on Supply-Side economics while democrats on Keynesian economics. Both sides focused too much on decreasing the debt instead of on improving the economy.
Minnu Augustine
Period 2
Article: Why the Government Can Run a Budget Deficit and You Can’t
A budget deficit is when the government spends more money that it has from taxes or other forms of revenue. If one’s bills are not paid, they will have bad credit resulting new credit being more expensive. However, governments can have deficits for years because they are highly likely to pay back the creditors. The consequences which will negatively affect the government are not immediate. The budget deficits are financed by the country’s treasury bills, bonds, and notes. The United States can have a larger debt than other countries because the dollar is used for most international transactions. Even if there is global uncertainty, the dollar’s status is usually safe.
May Liew- Period 6
Article: What is Being Done to Control Inflation?
The Federal Reserve is in charge of making sure that inflation does not occur while preventing a recession. By implementing contractionary monetary policy, the Fed can slow economic growth. Ideal GDP growth is 2-3%. If it is more than this, then excess demand can result in inflation by rising prices for too few goods. By tightening money supply, the feds make it more expensive to get loans. This puts a downward pressure on prices. There are several ways that they can do this. First, they can target open market operations and cause higher interest rates to slow economic growth. They can also raise the reserve requirement to keep money out of circulation but this is rare. They normally just adjust the Fed's funds rate. One of the most important tools however is managing public expectation because when the public anticipates inflation, it becomes self-fulfilling.
Article: Current U.S. Federal Government Spending
Current federal spending has overtaken the limit of 20% of GDP, rising with each year a around 3%, and various ideas are implemented to try to slow down the growth with little success. The money that the government collects every year in the form of taxes is spent on three main outlets: mandatory spending, interest payments, and discretionary spending. Mandatory spending takes the bulk of the revenue with the various programs of Social Security, Medicare, Medicaid, totaling around 2.6 trillion as more of the American population grows older and longer. The interest payments are made (around 266 million) in order to avoid a debt default and is expected to raise. The discretionary budget is around 1.2 trillion for contingency.
6th period
Article: US Debt Crisis: Summary, Timeline and Solutions
The current US debt has exceeded $19 trillion. Democrats blame Bush tax cuts and the 2008 financial crisis. The debt crisis however did not start til 2011,In 2011, Congress learned that threatening to NOT raise the debt ceiling was a poor way to manage the budget.The Budget Control Act also required a Congressional Committee to suggest ways to reduce spending.
Article: Could The Great Depression Happen Again?
Summary: many believe it is possible to have another Great Depression within the next year, this is not true. They believe that because stock prices fell early this year, oil prices are fluctuating, business credit has frozen among other things, that we are headed towards another great depression. However, we are still recovering from our last depression slowly but surely. That is why the country is still experiencing financial issues, because we are still surviving off of borrowed money and trying to very very slowly get rid of national debt.
Sabrina Tortolero
6th period
Sonia Gupta
Period 2
"3 Ways the U.S. Can Pay Off Its Debt"
Summary: There are three ways to decrease the debt of the U.S. The first is to cut spending which allows the economic growth to slow down. We must take into consideration that government spending is a component of GDP. The second is to raise taxes which will cut economic growth.The third is to drive economic growth at a faster rate than the debt.
Jake Hudson
Pye 6
"U.S. Debt by President: By Dollar and Percent"
This article talks about how and why the Presidents George Bush Jr and Barack Obama each contributed to the huge national debt. This can be a tricky thing to measure especially because the first year in office a president is still stuck to using the former presidents fiscal policy. One way that this is measured is by measuring all of the Presidents budget deficits.
"Value of the U.S. Dollar: What the 3 Methods of Measurement Tell You"
Overall this article talks about the various ways that the value of the dollar can be measured. The three ways are by looking at the exchange rate, the treasury notes, and lastly the foreign exchange reserves. Essentially the higher the value of the better it is for the economy. It may seem bad since prices are high but in reality, you'll be able to spend less money in foreign countries when you travel.
Andrea Doan
Period 2
"Simpson-Bowles Plan: Summary, History, Would It Work"
Summary: The Simpson-Bowles was a 2010 bi-partisian report on the best way fix US national debt. The plan recommend six steps which include: cap overall government spending at 21% of GDP, reduce mandatory spending, reduce federal healthcare spending, make social security sustainable,eliminate $1.1 trillion in tax loophole, and various process reform. However the plan failed to gain enough support.
"Mixed Economy: Definition, Pros, Cons, Examples"
A mixed economy is one which incorporates components of market, command, and traditional economic systems. The goal of a mixed economy is to gain benefits from these different types of economies without suffering many of the disadvantages. Mixed economies usually encourage the free market, while allowing some government intervention to safeguard businesses and the economy itself. Mixed economies may also retain some local traditional economic systems such as the Amish or funding of royals. The United States, along with most large countries in the world today are mixed economies.
Jasmine Patience
Period 2
Article: What is the public debt?
Public debt, or sovereign debt, is how much a country's government owes to individuals, businesses, or organizations outside of itself. The U.S. treasury dept uses the Bureau of the Public Debt to measure the debt. Public debt is a good way for the government to get extra funds. As interest rates rise, it becomes more expensive for a country to refinance its existing debt.
Erica Wong Period 2
"What is the public debt?"
Also called soverign debt, it is how much money the U.S government owes to lenders outside of itself. This definition may vary from country to country, but for the U.S, it is what applies. Through the Bureau of Public Debt, the U.S Treasury is in charge of controlling that debt. Public debt includes bonds, treasury bills, and notes. The Social Seccurity Trust fund is the amount of money that the government owes to federal retirement funds, now for the Baby Boomer population. The difference between external debt and public debt is that external debt is the amount of money owed to foreign governments, both from the government and private sector. Public debt however, can be good, as it is a safer alternative to foreign direct investment and gives funds to the government to use in their economic growth- if used properly, it will increase the standard of living in a country. However, governments have a tendency to take too much public debt because it makes them popular with voters. The debt-to-GDP ratio is how likely a country can pay off its debt. As it reaches its critical level, most investors demand higher interest rates. When/if this happens, governments have to put more money into that, and then less money goes towards the people, thus not helping to raise the standard of living whatsoever. The sweet spot of public debt is when it's large enough to drive public growth, but small enough to keep interest rates low.
Milen Thomas Period 6
Why the Rich keep getting Richer
An oligarchy exists when a very small amount of people control the government and money inside a nation. The pros of such a system are that the people not in the group do not have to worry about the government and can spend their time contributing other things to society. Also,it is very unlikely that a single person can make radical changes to the nation because it has to go through the other people that are in charge first. However,every system has its cons and an oligarchy's cons are that after some time the group becomes very restricted and not many people can join in except people who share the same viewpoints as the group and if people do not believe that they can join the group then they will get angry and rebel. An oligarchy can rise from either a dissolved monarchy or can even rise in a democracy if people are uninformed and a group of leaders decide to take over.
Period 6
"When Will Interest Rates Go Up?"
Interest rates began to rise last year in the United States, however, they were halted by "Brexit" which caused uncertainty in the future value of the pound and euro. As a result, investors put money into the U.S. dollar which brought interest rates back down. In addition, the Fed Funds Rate is what banks charge each other for overnight loans. The Federal Open Market Committee raised it to 0.5% in 2015. However, interest rates for savings accounts, CDs, credit cards, and mortgages don't comply with the Fed Funds Rate.
Gabrielle Le
Period 6
"What is Deflation? Its Causes and Why It's Bad"
Deflation is when asset and consumer prices continue to fall. This may seem like a good thing, especially to consumers, except the cause of widespread deflation is a long-term drop in demand. This means that if there is deflation, a recession is probably already underway. Deflation slows economic growth. As prices fall, people put off purchases, hoping they can get a better deal later. Thus, this decrease in demand causes businesses to cut costs to decrease their prices, increasing unemployment. In many respects, it can be argued that deflation is actually worse than inflation since the interest rate can only be decreased to zero percent and not any further.
Period 2
"U.S. Debt to China: How Much Does It Own?"
The U.S. debt to China is 1.185 trillion dollars as of August 2016 which is 30% of the Treasury bills, notes, and bonds held by foreign countries. Selling debt to China allows the U.S. economy to grow by funding federal government programs. It also keeps U.S. interest rates low. But China's ownership of U.S. debt is shifting the economic balance of power in its favor. If China called all its debt at once, the dollar would collapse and create a financial crisis which China's economy would suffer along with. As a result China will not call for its debt returns back because if they do it would weaken their economy and standard of living.
Sheryl Shajie
Period 4
“How Are Interest Rates Determined?”
Interest rates are determined by three forces. The first is the Federal Reserve, which sets the Fed funds rate. That affects short-term and variable interest rates. The second is investor demand for U.S. Treasury notes and bonds. That affects long-term and fixed interest rates. The third force is the banking industry. They offer loans and mortgages that can change interest rates depending on business needs.
Andison Chung .4
What is public debt
The public debt is defined as how much a country owes to lenders outside of itself. These can include individuals, businesses, and even other governments. public debt is the accumulation of annual budget deficits. It's the result of years of government leaders spending more than they take in via tax revenues. Public debt includes Treasury bills, notes, and bonds, which are typically bought by large investors.
"What is public debt?"
The article what is public explains what debt is. It is referred to as sovereign debt , which is how much a country's government owes. Public debt and sovereign debt are basically the same thing but the word sovereign means national government.Debt has a negative connotation but it can also be good sometimes. It allows foteignets to invest in other countries economic growth. When public debt is used correctly it can be beneficial. Now the bad side of debt , of course , is definitely not beneficial. The government take risk to spend the most they can by calculating if they can possibly pay off their debt. The government has to find the "sweet spot" of public debt but also be careful of not getting too far in debt.
Zain Bhai
Period 2
"Why You Can't Fix Government Debt Crises the Same Way You Fix Yours"
This articles explains why the US government can not fix their debt issues the way regular citizens can. A debt crisis is when anyone, whether it's you, your business or your country, owes more than they can pay off in loans.The difference between the types of debt are a household debt, which is when a crisis occurs when a family starts falling behind on monthly payments, while a business debt crisis is when a company has trouble repaying its loans, and lastly a sovereign debt crisis occurs when a country can no longer pay the interest on its debt. The government cannot resolve its debt crisis the same way because there is no international bankruptcy court that lenders can go to for fair adjudication, so countries can default easier. Also, sovereign debt is not secured by any collateral, and lastly, most countries can print their currency to pay off a debt, which is not effective. And one of the most important reasons why the government can not pay its debt so easily is because if a household or a business cuts costs, it will have more money to pay its debts. Since government spending is a component of Gross Domestic Product, when it cuts costs it also reduces economic growth. So the government paying off its debt is very complex and much harder than to deal with than regular debt.
Zain Bhai
Period 2
Per. 2
"What is the federal budget?"
The federal budget is the government's estimate of spending and revenue for each fiscal year.The revenue for most governments comes from taxes. These include taxes on family incomes, business profits, and imports (custom duties and tariffs). when the government spends more than it takes in, it is known as deficit spending. The U.S. fiscal year runs from October 1 through September 30. The U.S. federal budget has two categories: mandatory and discretionary. and finally The Constitution gives the U.S. Congress the power over the federal budget.
Namisha Mithani
Period 6
Article- "What are Mutual Funds? Pros, Cons, and Types"
Mutual funds are stocks bonds or other investment assets. Price of a mutual fund share is called it's net asset value (NAV). The net asset value is the total value of all securities it owns divided by the number of mutual fund shares. The prices of mutual funds change at the end of a business day. The advantage of mutual funds is that they are less risky since they are a diversified investment. A disadvantage of mutual funds it is the time it takes to research them. stock funds focus on types of companies such as industrious, domestic, international, emerging market or frontier markets, small, mid or large-cap companies. Some of the top 10 mutual fund companies include Vanguard, Fidelity, American, Barclays, and Franklin Templeton.
"Social Security Trust Fund: History, Solvency, How to Fix it"
There are two forms of Social Security. OASI is for retirement and DI is for blind/disabled people. 90% of workers pay Social Security taxes. Workers contribute 85% of the fund through payroll taxes, interest on excess funds held by the Treasury contribute 11%, and current beneficiaries contribute the remaining 3%. The main issue of Social Security is that future benefits will have to come from taxes that are being used today to pay for other government programs. The two ways to help lessen the problem are to increase taxes or decrease the benefits paid.
Period 4
"Austerity Measures: Definition, Examples, Do They Work"
Austerity measures are reductions in government spending, increases in tax revenues or both. These oftentimes harsh steps are taken to lower deficits and avoid a debt crisis. Governments are unlikely to use austerity measures unless they are forced by the bond market or other lenders. When the government reduces its spending via Austerity Measures, they usually focus on limiting the terms of unemployment benefits, extending the eligibility age for retirement and health care benefits, reducing government employees' wages, benefits, and hours, and cutting programs for the poor. The government may also increase value-added taxes, raise income taxes, target tax fraud and tax evasion, and sell government-owned businesses. Austerity Measures are very unpopular and may even lead to public revolts. One example of this is the May Day protest, where angered protesters fought on the streets due to harsh Austerity measures demanded by the E.U.
4th period
Article - 3 Ways to Visualize the National Debt
The US debt is at an all time high of $19 trillion. In order to reduce the debt, the government needs to cut spending, raise taxes, or drive economic growth at q faster rate than the debt. Raising taxes and cutting spending are not usually realistic options for officials to carry out long term. Even if efforts were strong enough to decrease debt, it would likely not happen because cutting popular programs often gets officials out of office, the economy is much larger than the debt, and raising taxes and cutting spending is unpopular. The national debt is almost $60,000 for every man, woman, and child in the US, it is the largest in the world, and it is more than the country produces in a year.
Arianna Dunne
"U.S Economy: Fast Facts and Summary"
-What exactly is the US economy?
The United States of America has the world's third largest economy that operates as a free market economy with aspect so also of a command economy, including some government regulations. As of September, 2016, the US's GDPwas $18.651 trillion and the growth rate from July- September 2016 was 2.9%.
James Ware
4th Period
The US currently has $13.7 trillion in public debt. Public debt is debt a country owes to a fellow nation. It is also know as sovereign debt and is issued out by the Treasury through notes, bills or bonds. Public debt can be good for a nation's economy by gaining additional capital but as the debt rises investors demand higher interest rates making it harder for nations to pay off this debt.
Nicole Aguilar
AP Economics
Period 4
Article: "What is the Ideal GDP Growth Rate?"
This article is about what an ideal GDP growth rate is and how it affects the overall economy. It starts off by defining GDP, which is the entire economic output for the past year. It mentions that unemployment and inflation have to be in balance if the GDP is to be in balance as well, not only that but it describes the GDP growth rate like a temperature of 98 degrees Fahrenheit; you neither want it growing too fast or too slow, or in the example's case, too hot or too cold. The article uses an example such as the 1999-2000 irrational exuberance explanation and how a healthy GDP growth rate is around 2 to 3 percent. The article explains why our economy was so bad and why it didn't get better until a few years later by explaining that Obama inherited an unhealthy economy, and that our economy's health right now is fairly stable. The question it leaves the reader, though, is will it remain healthy in the end? There's no way for humans to know for sure, but as long as we have economists, we can always predict how our economy will fair in the best way possible.
Daniel Doucet
Period 2
"Secrets of the Unemployment Rate"
Cyclical Unemployment is the most popular topic in the media when it comes to the unemployment rate. News stations and the press will rarely tell the reader about how the two other kinds of unemployment, structural and frictional, make up the majority of the unemployment that we see. This failure of the media leads to the common myth of "0% unemployment" seekers. It is pretty much impossible to reach 0% unemployment, and the unemployment rate isn't even perfect in measuring unemployment. Discouraged workers and underemployed workers are not counted in the unemployment rate, for better or for worse.
Jose De Leon
2nd Period
Article: When Public Debt is Bad
This article talks about what goes into the head of the government when our debt reaches its critical point. When debt is reaching a critical point investors start demanding a higher interest rate. If the country keeps spending bonds will receive a lower S&P rating. Interest rates drive straight up which makes economic expansion more expensive. Governments need to find a perfect place for its economic growth while keeping interest rates low.
ben alcock
4th period
Sovereign Debt: Definition, Importance and Rankings
The soverign debt is defined as how much a country owes to lenders outside of itself. These can include individuals, businesses, and even other governments. soverign debt is the accumulation of annual budget deficits. It's the result of years of government leaders spending more than they take in via tax revenues. soverign debt includes Treasury bills, notes, and bonds, which are typically bought by large investors.
Grace Swift//4th
Article: What is the national debt?
This article is composed of two main topics: What is the current national debt and What was the national debt when bush left office. The first key point is broken down into explaining how deficit spending contributes to the debt and a debt-to-GDP ratio analysis. The second key point is broken down into how President Bush increased military spending and then comparing him to the way President Obama and President Reagan's handled financial issues.
Anjana Thomas-2nd Period
Sovereign Debt; Definition, Importance and Rankings
Sovereign debt is the amount of money that a country currently owes. It shows the governments’ deficits, meaning that it explains how much more the government spends than it receives in revenue. It doesn’t measure what the government owes to other governments, they also separate public debt from debt owed by the federal government itself. Deficit spending helps create demands without costs coming till the near future. The demand also leads to new jobs on the rise. If the sovereign debt stays the same then the creditors will fell safe of the expanding growth because of higher interest rates
What is public debt?
public debt refers to a part of the total borrowings by the Union Government which includes such items as market loans, special bearer bonds, treasury bills and special loans and securities issued by the Reserve Bank. It also includes the outstanding external debt.
David Adeogba
Period 6
Will the US Debt Ever Be Paid-Off?
The basic answer to the question above is not anytime soon. There are many ways to start paying off the debt, such as cutting spending, raising taxes, and causing the economy to produce more than the debt. Currently the total debt to gdp ratio is above 100%, but national banks do not concern themselves with this ratio because the public debt to gdp ratio is about 76% which is 1% below the point at which banks start to get nervous. The main issue with the debt is that repaying the debt is that it requires unpopular decisions such as cutting spending on social security.
Soveriegn debt is how much a country's government owes, it means the same thing as national debt. Soveriegn debt is measured differently depending on who's measuring it and why. Keeping the soveriegn debt at a reasonable level helps to expand the economy. However having the debt higher than the gdp makes the economy less reliable. America currently has the highest soveriegn debt of any country in the world.
Hannah Enyioma 6th
Article: Why the Dollar is the Global Currency
The dollar is the the global currency because it is a strong currency due to the strength of the U.S. economy. Many countries keep their own currency closely pegged to the dollar including 7 that have adopted the dollar as their own form of currency. the 1944 Bretton Woods agreement also helped make the dollar the highest currency in the world. The agreement between many countries was to make currency backed by gold since most every country was on the gold standard. Since the U.S. had the biggest gold reserve, countries could back their own currency with the dollar.
The U.S debt increase by a trillion U.S. dollars a year. We can cut our debt by spending less, cutting taxes or reallocating money into job produicing programs. Unfortunately politicians lose their office when they try to cut popular programs. Most politicians believe that the economy will grown fast enough to create a healthy GDP-debt ratio. Cutting spending and raising taxes doesnt gain votes so politicians do neither. The best way to solve the debt crisis, is to cut spending when the economy is booming.
Hilary Clintons Economic Plan
The article discusses Hillary's plans for when she becomes president. Some of her ideas include raising the tax on the wealthy, creating multiple plans including the energy plan, expanded child care plan, and the national infrastructure plan. Hilary's plan sound nice in theory, but I don't think she put much thought into the long term effects these programs will have on the economy. Also, no one knows if Hilary wants these plans enacted or if it's just another ruse for votes.
Yash Bindal
Per:6
4 Real Ways to Create More Jobs
The underlying role of government is to create confidence, powering the economic growth needed to create jobs. If a recession is severe, then the President and Congress can use expansionary fiscal policy to create jobs. Tax cuts create jobs by putting more money directly into the pockets of consumers and businesses. Tax cuts create jobs by letting families or businesses keep more of their own money. A Congressional Budget Office study found that, for example, the Bush tax cuts create 4,600 jobs for every $1 billion in foregone tax revenue. Benefits create so many jobs because the unemployed have to spend all the benefits received on necessities like groceries, clothing and housing.
Ashley Crumbaker
period:6
The National debt of the United States is the amount owed by the federal government of the United States. The measure of the public debt is the value of the outstanding Treasury securities at a point of time that have been issued by the Treasury and other federal government agencies. The terms national deficit and national surplus usually refer to the federal government budget balance from year to year, not the cumulative total. A deficit year increases the debt because more money is spent than is received; a surplus year decreases the debt because more money is received than spent. In general, government debt increases as a result of government spending, and decreases from tax or other receipts, both of which fluctuate during the course of a fiscal year.
Kendall Truong
Period 2
Article: Contractionary Fiscal Policy: Definition, Purpose, Examples
Contractionary fiscal policy is when the government either cuts spending or raises taxes to slow growth to a healthy economic level. As good as it sounds, the policy does bring negative side effects to the economy. First, it can create an asset bubble, formed when the prices of an asset, such as housing, stocks, or gold, become over-inflated. Second, it lowers unemployment below the the natural rate of unemployment. Third, it creates inflation. Besides all these repercussions, government cutting spending and raising taxes results in putting more money into consumer pockets.
period 6
National debt under Obama
People believe that Obama added 9 trillion to US debts because that was the change in debt from the start of his presidency to the end of his presidency. Obama did increase debt. During his presidency there was a decrease in federal income therefore no money was left to start slowly eating away at the enormous debt the us is in. The decrease in federal income was caused by the tax cuts Obama put into place. He did cause debt but not large amounts.
John Abraham
Period 6
US Debt Crisis: Summary, Timeline and Solutions
In America the last time that debt to GDP ratio was more than 100% was to pay for World War II. A true debt crisis is when a country is in danger of not meeting its debt obligations. by fighting a political battle over ways to curb the debt,Democrats and Republicans in Congress created the debt crisis.Both political parties compounded the crisis by arguing over how much to cut spending.To recover from a recession, government spending should remain consistent. Any cuts will remove liquidity and raise unemployment through government layoffs.
Allen Johnson
Period 6
"How to Calculate How Much you Make in an Hour"
A rough estimate in discerning your hourly wage is taking your yearly salary, dividing by 1000, and then dividing by 2 (hourly wage = yearly wage/2000). This is under the following assumptions: 40 hour workweeks, 2 weeks vacation and no overtime. This leaves 50 work weeks in the year, and multiplying by 40 hour work weeks gives roughly 2000 hours of work in the year. There is a more precise method called the ratio analysis method, in which you count up the total number of hours you work for your salary, and divide your salary by that number.
6th period
Article: Expansionary Fiscal Policy: Definition, Examples
To summarize the article dumbed down it explains the difference in presidential fiscal policy. For example Democrats and Republicans and why they believe in different fiscal policy are better for the economy. Republicans ,like Bush, think that fiscal policy shouldn't be expansionary but should be Contractionary. While Democrats, like Obama, think that fiscal policy should be expansionary. While both think they are the correct way of Fiscal Policy they both have their pros and cons.
Victor Varghese
Period: 2
Article: Will America ever Pay Off its Debt?
The U.S debt is more that 19 trillion, largest by any country and it's increasing 1 trillion each year. There are three ways for U.S to pay off debt one is to decrease spending another is to increase tax and the last is to drive economic growth in fast rate. It's unlikely America will ever pay off its debt. The debt will only be a threat when creditors get worried it won't get paid back. They will get worried when the debt-to-GDP ratio exceeds 77% and the U.S. debt-to-GDP ratio is more than 100%.
The National Bureau of Economic Research (NBER) determines when a boom occurs. It uses economic indicators such as Gross Domestic Product, employment, and income. Since 1854, there have been 33 economic booms. They typically last 38.7 months each. For more, see NBER Cycles.
A rise in consumer demand causes a boom. That's because families are confident to buy now because the future is bright. They are buoyed by better jobs, rising home prices, and a good return on their investments. As a boom starts when economic output, as measured by GDP turns positive. Many other economic indicators may have already turned positive before that.
Stanley Johnson
Period 6
Article:What Is Sovereign Debt?
This article talk about sovereign debt. Sovereign debt is how much a country owes. Sovereign means the same thing as national debt. Sovereign debt shows how the government spends more that it receives in revenue over a period of time. I do believe the debt will be payed off but I feel that it will take a long time. This will only be possible if our government works together and make new plans that will benefit the economy.
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