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The wars in Iraq and Afghanistan (Trade)
The war in Iraq and Afghanistan caused our debt to go even higher because we spent and invested a lot of money in this war. American spent $1.3 trillion on the war. This would be an example of trade because most of the money that we spent from the war was from trading with other countries for supplies and other things.
http://theweek.com/articles/483063/what-caused-national-debt-6-culprits -
Bush Tax Cuts (Budget)
In 2003 President Bush introduced a Tax Cut Policy that did not help the nations debt at all. Insead of helping the nation like Bush wanted to he only sent hurt our national debt. His Tax Cut policy is an example of budget and fiscal policy because it hurt the national budget and it did not help the money in the nation to flow. -
FED Leadership Change (Leadership)
When Goerge W. Bush took his 2nd term as President he thought that it was time for a new leader for the FEDs. This change caused a big problem with our nations debt because the guy that replaced Ben S. Bernanke did not do any thing to help the economy. This would be an example of how leadership effected our economy and Monetary policy because it involves the FEDs and how they didn't help the economy at that time.
http://www.nytimes.com/2013/07/27/us/politics/fed-chairman-change-casts-new-light-o -
Health care entitlements (Budget)
The government spent more money on medicaid. They spent over $1.1 trillion — $900 billion on medicaid. This would be a budget problem because instead of the nation haing people spend money for medicaid they lowered the taxes on it.
This would be an example of a bad fiscal policy because they are not letting the people pay enough in taxes to keep the economy flowing.
<a href='http://http://theweek.com/articles/483063/what-caused-national-debt-6-culprits'. -
Not Enough Saving In the Nation (Savings)
Around this time period there was also not enough saving going on as well. This was a major issue because it did not help the banks and it caused more people to go into debt. This an example of the negative effect savings had on the economy because people weren't helping the banks by saving their money. This would also be an example of fiscal policy because the nation is not helping the economy by spending thst much money without saving some. -
Trading With China (Trade)
We have traded with China for many years and overall they have been the one country that was have barrowed money from the most over the years. This is a major problem because we owe China a lot of money but we dont have the money to pay them back because of our debt. This would be an example of trade because we trade a lot of goods with china and we barrow money from them. -
Obama's Presidency (Leadership)
Over the amount of time that President Obama has been in the White house our national debt has raised to $5.4 trillion. This means that his leadership and policies caused our national debt to rise.
http://abcnews.go.com/Business/national-debt/story?id=17159803 -
Nation Is Saving Too Much (Savings)
In 2007 -2009 Americans were saving way more than they were spending because they were afraid of the economies bad state. This would be an example of how savings effected the national debt in a negative way because not very many people were spending money so that the economy could flow. This would also be an example of fiscal policy.
