What does the US government debt mean?

Surely everyone will agree that America is currently famous in every corner of the world due to its financial debt. Some experts believe that the US public debt is some precursor to the destruction of the entire world economic system. In addition, China has accelerated its pace of development, including economically, hence now this country is on the heels of the States. Experts say that China will dominate in the near future. In this article, we will consider the reasons for the appearance of debt.

The national debt of the USA. Causes

The main prerequisites for the appearance of such financial dependence are in fact in the history of this state. When the United States was still in its infancy, the economic growth of the state at that time was mainly based on newly arrived adventurers, as well as on the direct work of emigrants. In addition, during the founding of America, the main workforce was slaves, who were periodically imported from Africa for the subsequent supply of labor to the country.

Of course, after the famous war between the so-called North and South, slavery was soon abolished, but, as practice shows, in fact, there was still. At that time, approximately the following scheme operated: emigrants entering the country in search of unprecedented happiness were offered loans for sufficiently inflated interest, which some could not pay until the end of their lives. Thus, people became hostages of a huge debt hole, which not everyone could get out of.

Due to the fact that a large number of migrants entered America every year, the state grew rapidly, however, the economy could not withstand such a serious influx. On the other hand, real scientific and technical progress was taking place in Europe, mechanical work was replaced by machine work, new developments were introduced. The US wanted to follow Europe, however, financial investments were not enough. Undoubtedly, the country itself could not attract huge funds. The only possible rational way out of this situation is to create your own currency and literally impose it on the whole world. Very soon such a moment came. At the end of the Second World War, many states were seriously affected, but the US was not among them. The debts of the states turned out to be significant. To help its neighbors, America began issuing development loans in its own currency to all. Thus, the American currency (dollar) has gradually become international. After such a development of events, all countries became dependent on the dollar, since almost all financial transactions were conducted with its help. So, now it becomes clear why the US public debt is so big.

Due to the fact that the dollar has become the main accounting unit in the world, that is, the entire planet depends on it, other countries simply do not like its fall. Consequently, countries are constantly financially supporting the US in order to keep its economy afloat. Of course, this state of affairs has been going on for a very long time. At the moment, according to experts, the national debt of the United States is about 13 trillion dollars.