Explain why the portion of the national debt owed to foreigners is a serious matter, whereas the portion owed to U.S. citizens is of less concern. Why does the U.S. national debt pose less of a problem than the debts of Greece in 2010?
What will be an ideal response?
The portion owed to foreigners will reduce Americans’ future wealth. The money will have to be paid by U.S. taxpayers in the future. The portion owed to U.S. citizens represents a future transfer payment from some U.S. citizens to other U.S. citizens. The taxes paid to make these payments will be used to repay principal and interest to U.S. citizens. In contrast to Greece in 2010, which did not owe their debt in a purely domestic currency, the U.S. debt owed to foreigners is debt owed in dollars. This makes the U.S. debt less of a bankruptcy problem or financial crisis problem and more of an inflationary or wealth transfer problem.
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Answer the following statement true (T) or false (F)
Management as it relates to home and family life was talked about for centuries but it became a formal study in the U.S. (and since worldwide) in the ____ century:
a. 17th b. 18th c. 19th d. 20th
When the markets of an economy are more competitive, economic growth
a. is harmed by the resulting low rates of profit for industry. b. is enhanced because producers have a stronger incentive to provide goods efficiently. c. will be slower because prices do not rise as rapidly. d. is unaffected.
An increase in government spending shifts aggregate demand
a. to the right. The larger the multiplier is, the farther it shifts. b. to the right. The larger the multiplier is, the less it shifts. c. to the left. The larger the multiplier is, the farther it shifts. d. to the left. The larger the multiplier is, the less it shifts.