If you are living in the states you would have earn it by now. The US debt has reached US$13 trillion dollars (officially 13,050,826,460,886.97 dollars on June 1). The Treasury Department stated that it was due to government overspending. As usual the democrats and the republicans will start to push the blame rather than looking for a viable solution. On a serious note, both sides have not done anything for last 10 years other than mocking and spending unnecessarily. The damned debt has literally doubled and it`s standing at the 90% of the annual gross domestic product.
The worse is not over yet. The U.S. government is roughly accumulating about US$5 billion dollars a day. Furthermore, there was a huge healthcare reform. Ever since President Obama took office the deficit increased to US$2.4 trillion. This figure does not mean that its President Obama`s fault. He did inherit a mess from the infamous “ape-man” George Bush. The man problem now is that too many things are going down. The major issues like the oil leak in Louisiana, the possibility of North and South Korea going to war and many more problems are going to be become even a bigger burden.
The obvious solutions that they would consider is to cut spending and the increasing taxes. Obama has also launched a debt commission to find ways to resolve this issue. Remember this people who doing the research are only going to give options and recommendations. They could simple create suggestions that they think is plausible and the deadline for them is by the end of the year. So what has happened to reaching out to people? Let`s assume that they come up with something. Will the new idea require more funding? We have to think again about the timeline. Remember its US$5 billion a day going up in smokes. Just count up the days to the end of year and think about the increase in debt. So who will suffer for this? The government talks about cutting cost, but sadly I think they should look deeper. They have lost a lot of money in investing businesses and have had cases of being cheated for millions of dollars. Whose money is it that they spend? George Bush is getting for giving speeches. REALLY?!!! They want to spend that kind of money on him.
Why will this situation get worse? Recently, the unemployment rate was announced. There was only a slight drop in the rate, from 9.9% to 9.7%. However, it was more than enough to for investors to pull out and make the stock markets to take a dive. The major problem is majority of the people who got employed are working the government under temporary contracts, which summed to about 431,000 new jobs created. In the private sector, jobs rose only by 41,000. Why businesses are not employing more people? Simply put they do not need to. Many businesses in the U.S. are profiting and making full use of their employees. It is clearly not their fault if they do want to employ more people and the government should not force them as well. The government jobs are temporary; as soon as contracts expire people will try to re-contract. At the same time, there will more people who want a job as well. Where will all these people go?
The government expects more jobs in the coming months but it is just a hope unless they take some serious measures in making sure that if companies employ more people they too will gain a good incentive. Even if President Obama says that the necessary steps are taken, it still seems to be a failure so far. Until we see a major change in the unemployment rates, there is going to be more problems related to debts as well. There is one thing I really hope is that companies in the U.S. would start to do in-sourcing within the U.S. rather than outsourcing. The government should aid such companies and offer incentives to reduce the overhead cost.