The Collapse of American Society

The American economy is in very bad shape right now. It would have nearly collapsed if the Republicans and Democrats had not passed a debt reduction plan. The U.S. public debt has reached $14.46 trillion, and if this compromise had not been reached, the U.S. would have experienced sovereign default. This would have deprived Americans of many basic services including Social Security and Medicaid. In addition, the U.S. credit rating has already been downgraded.

President Obama has known about the escalating debt problem, the problems it could cause for Americans and how it would have an adverse affect on businesses and education. He encouraged both parties to work together in order to reach a solution. The Republicans wanted to raise the debt limit and decrease government spending; they said that they did not want to give a “blank check” to Obama and that government spending would have to be reduced immediately.

During Bill Clinton’s administration, the U.S. public debt was $5.7 trillion. When America started waging its fanatical wars against Islamic countries such as Iraq and Afghanistan, its debt increased. From 2003 onward, its debt grew by $500 billion every year until 2008, when there was an increase of $1 trillion. In 2009, its debt increased by $2 trillion, and in 2010, it grew by $1.7 trillion. Now, the public debt is $14.46 trillion. China owns $1.2 trillion of the debt, and Japan owns $882 billion.

Despite the messy state of its economy, the U.S. continues to spend more than it should every year. If it had not passed this debt reduction plan, the whole world would have been adversely affected – this includes Pakistan, which depends greatly on the U.S. Now that the Democrats and Republicans have reached a compromise, the next question is: How will they go about reducing the debt?

The presidents of the 14 largest banks and insurance companies in America signed a letter stating that the U.S. must reduce its debt. If it does not do so, its economy and society will collapse, its credit rating will sink lower, its dollar value will decrease and its stock and bond markets will weaken considerably.

One of the main reasons for America’s enormous debt is the wars it has been fighting in Iraq and Afghanistan. It has spent billions of dollars trying to win these wars. Soon after the Soviet Union fought a war with Afghanistan, it collapsed into little pieces. America finds itself in a similar state today: Its society is in very poor condition, and it is making excuses to leave Afghanistan without being ashamed. It would have been wise for America to learn history’s lessons before it decided to fight a war in Afghanistan.