Economics Name Institution Course Date Part 1: It is possible to get completely out of debt. An individual can live with no debt at all. However it is never a wise decision to be debt free. A person needs to understand whether a debt is good or bad before committing to it. Given that a considerable number of individuals incur debt without first analyzing its usefulness it is possible to be out of debt in many occasions. Nonetheless it is unwise to be out of debt because it means zero growth or at a minimum a low rate of growth (Hanson 2005). A debt is good because it is an investment that an individual uses in generating future and long-term income. It grows in value hence the economic status and net worth of a person. I agree with economist Roger Miller. Debt is an important aspect of a person international investment by the government (Picard & Karazsia 2014) aimed at bringing long-term benefits. This is achieved through benefits to the people where foreign aid is given and later to American citizens and individuals from other developed nations. References Checherita-Westphal C. & Rother P. (2012). The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area. European Economic Review 56(7) 1392-1405. Denoon D. B. H. (2017). China the united states and the future of latin america: U.s.-china relations volume iii. New York University Press.Hanson J. (2005). Good debt bad debt: Knowing the difference can save your financial life. New York: Penguin Group. Picard.A & Karazsia A. (2014). ‘The Truman Administration’s Foreign Aid Legacy: From the Cold War to the War on Terrorism’ In Geselbracht R. H Foreign aid and the legacy of Harry S. Truman. Kirksville Missouri: Truman State University Press. [...]
Stay in ORDER do NOT skip around! Answer all questions in detail! Assignment Description: Personal debt is related to both finance and economics. Economics studies debt as a consumer behavior whereas finance looks at debt as leverage. Either way, debt and access to credit affects spending in many ways. Overspending leads to excess debt, but is some debt still ok? Some experts will weigh in on the issue and we’ll discuss their opinions. Min 1 Paragraph In your opinion, is it possible or wise to get completely out of debt? Explain your opinion using at least one resource to support your answer. Your post should be a minimum of one paragraph with reference source. Min 2 Paragraphs In the book Total Money Makeover, Dave Ramsey states that the best thing one can do to gain financial freedom is to get out of debt. He advocates we pay off our cars, house, and student loans, and never borrow again. Others believe we should live in debt. Economist Roger Miller writes, “Living in debt is reasonable for most people. Most people are better off by smoothing out their consumption purchases over a lifetime.”(Miller, 2007) Which author do you agree with and why? What if you borrowed money today but the dollar decreased in value by the time you were ready to repay the loan? Would your answer be the same? Your post should be a minimum of two paragraphs. Part 2: Assignment Description: The national debt is simple math: when government spending exceeds government revenue, the difference becomes an annual budget deficit which is added to the national debt. Currently, it’s $17 trillion and our GDP is $16 trillion. Economists debate the effects of a large national debt on our economy. Some say it’s manageable, some say it’s not. Answer the following questions in a minimum of four paragraphs. The U.S. federal government debt is estimated to exceed $20 trillion dollars by 2015. Are you concerned about what this means to future generations of Americans? Why or why not? Do you think the U.S. is headed for a collapse within the next few decades? Why or why not? Why should we be concerned when the government runs persistent budget deficits? Use evidence to support your position. Part 3: Assignment Description: The U.S. trades with both developed and developing nations. In addition to commerce, our government can also help developing countries through foreign direct aid by giving them money or providing low cost loans. Opinions regarding the benefits of both foreign aid and trade vary among Americans. Some say it benefits America, while others say it doesn’t benefit America. Answer the following question in a minimum of four paragraphs. In your opinion, should the United States base its domestic and foreign policy as it pertains to trade on what is best for the world and poor people everywhere? Or, should the United States make decisions based solely on what is best for its own citizens? Why? Use evidence to support your opinion in a minimum of two paragraphs.