My Wake-Up Call & Solutions
Debt is currently plaguing its way through America, with debt at a national high of over 30 trillion dollars according to U.S. Debt Clock. The pandemic greatly contributed to this as U.S. debt surged by trillions of dollars as consumer consumption continually declined and businesses shut down and failed. While America does pay off portions of debt, the total amount is still increasing as the federal government spends more than it earns.
Our current standard of living with debt is unsustainable unless we take immediate action. Many people are not aware of how much debt America has accumulated. America faces a budget deficit, saving deficit, trade deficit, and a leadership deficit. America as a country began off in debt, making the founding fathers take quick action to bring it back to 0. In the 1980’s, a fundamental shift in America’s economy changed as debt reached new heights. Since then, we have been accumulating more debt than we can pay off in the near future. While this issue seems like it might only impact the government, it concerns every American citizen and country that has close ties with the United States. It’s important to be educated on the current state of our economy in order to make well informed financial decisions. Social Security might not apply to my generation as the baby boomers are retiring and the government is increasing the deficit through social security, not decreasing it. Current generations are also saving significantly less compared to previous generations, meaning less money is being invested. Investing can create a better future, while racking up debt worsens the nationwide problem. These issues could create a fiscal catastrophe in America. Unfortunately, these issues will most likely not be addressed until it is too late. Our foregin-owned debt is also drastically increasing every year. This can contribute to a politically unstable environment. Too many of our current leaders are aware of the debt crisis we are facing, but are taking no action to slow or fix it. While citizens didn’t ask for this problem and didn’t spend this money, it will be citizens that pay. This issue will not disappear but rather grow and be pushed down to later generations. It’s the future children of America who will have to pay for this issue. There are many solutions that could help alleviate the debt issue. However, it is imperative we act now. Serious budget reform is the first step in beginning to pay the debt off. Budget reform will help reduce debt, which is vital to the overall debt issue. In order to get out of a hole, you have to stop digging first.
It’s vital to recognize these issues and prepare financially for them. I personally want to live a long happy life, not worrying about money. In order to do this, I need to be educated on the economic status of America. Our current state is not sustainable for the long term. As an individual, I want to have a sustainable financial plan for my future. To plan for the economic debt crisis America faces, I plan to invest and save as much as possible. Researching smart long term investments will aid me in the future. As a young adult, it’s important to be as educated as possible on finances to make the smartest decisions for my future.
