US Economy: Is it an Economic Black Hole?

US Economy: Is it an Economic Black Hole?

Many Americans still don’t know that what’s going in the US Economy. In fact, many economists say it the Economic Black hole. This is because the US Economy is never going to recover back fully. Now, let us today understand that What’s the problem? Why Economists say the US Economy a Black Hole?

Well, the main problem with the US Economy is – Debt.

USA is sitting on the Mount Everest (World’s highest mountain peak) of the Debt. No other country or economy has ever accumulated this much amount of debt in the history of mankind. And this debt now is slowly eating up the economy. And on the top of this, to pay this debt, the US Government is taking new debt.

In other words, you are borrowing money from another credit cards to pay the first credit card. Now, the question is that, Who will pay this much of Debt?

The answer is – Obviously the Tax Payers & their future generations.

Remember, The US Government is taking billions and trillions of dollars of debt from other countries of the world on the basis of the tax paying capacity of the US Citizens. This is because almost 80-90% of US Government’s Total Income comes from collecting tax from Individuals & Corporations.

Now, This means that, the US Government is leveraging the financial future of your next generations. This means that your children will also have to pay more taxes just like you because they have to pay this huge debt.

Obviously, since last few decades, USA was doing massive growth from this debt. But now it is taking new debt to repay the older debt only.

Moral:

A Debt is a very bad thing for anyone weather you are an Individual, Large Corporation, Small Business or the entire Government, The Debt is bad. Of course, up to certain levels, Debt fuel the Growth and that we call a good debt but after some level, the debt becomes poison and push you in the Economic Black hole.