In This Article
In this short article, we will take a look at exactly how our national debt may lead to a financial crisis and how worried you should be.
What is Driving This Debt?
Government expenditure is the source of the national debt. This results in a budget deficit.
Government always spends more money than it takes in. This is because government spending, as one might imagine, is politically popular.
Citizens have faith in government assistance because they know they’ll have a lifeline if things get rough. A financial collapse threatens any administration with heavy debt, regardless of politics.
You can check the current debt for yourself right here. The national debt per person is nearing $100,000, which is well over what the average American makes every year.
At the same time, we are also experiencing corporate debts, which are also at an all-time high.
What Will Happen?
You can straight up expect lower standards of living, over 6 million more unemployed, over $15 trillion in wealth lost, lower overall returns on stock market investments, and possibly a financial system crash much larger than that of the 2008-2009 crash.
If the situation does not get better from there, then foreign assets will be taken from us, local bondholders will turn against the government, and war may be waged.
How You Can Prepare
There are a few commonsense things you can do to prepare. First, you should know the fundamentals of personal finance.
Things you should do include saving as much of your money and other currencies as possible. And start building skills to generate more cash flow. This can be investing, starting an online business, and everything in between.
Here is a detailed article outlining how to prepare for an economic collapse.
One of the most critical public policy challenges is the national debt level. Debt may be utilized to promote a country’s long-term growth and prosperity when used properly. However, the national debt must be analyzed properly, which it is not at the moment.
The best you can do right now is to prepare your personal finances and prepare for a possible collapse.
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