National Debt Growth

The US National Debt balloons to over $35 Trillion dollars exceeding 100% of GDP and peaking at the highest levels since World War II following Great Recession and COVID bailouts, and period of high deficit level spending.

 

Significance:

  • Interest on Debt exceeds $1 Trillion dollars alone
  • Interest payments exceed cost of US Military, move into 3rd largest budget expense
  • Period marked by High Inflation
  • Looming decisions on higher deficits, more taxes, lower spending, or higher inflation

 

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National Debt Growth

COVID 19 Pandemic

Ongoing event with evolving economic impact, highlighting challenges of balancing public health needs with fiscal sustainability.

 

Significance

  • Massive increased spending for economic stimulus payments, unemployment benefits, healthcare programs.
  • Potential future cuts to other programs to offset pandemic costs.
  • Individual and business tax relief packages.
  • Rapid expansion of Money Supply (Printing Money) followed by high inflationary period

 

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COVID 19 Pandemic

Great Recession 2008

Defined largest government intervention in the economy since the Great Depression, prompting discussions on fiscal responsibility and economic stimulus strategies. 

 

Significance

  • Increased spending for bailouts, unemployment benefits, stimulus programs. Cuts to discretionary programs.
  • Decreased taxes: Stimulus packages with tax cuts and rebates.

 

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Great Recession 2008

Bretton Woods Agreement

Defined the post-war international monetary system, fostering global economic growth but creating rigidities over time.

Significance

  • Limited national autonomy in monetary policy but promoted international trade and financial stability.
  • Established fixed exchange rates for major currencies, pegged to the US dollar, which was convertible to gold at $35 per ounce.
  • Established US Dollar as the world Reserve Currency
  • Established the International Monetary Fund (IMF)

 

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Bretton Woods Agreement

Boston Tea Party

Colonists disguised as Native Americans boarded British ships and dumped tea into the Boston Harbor in protest of the Tea Act, which reduced the cost of British tea while maintaining a tax.

 

Significance

  • Act of defiance against perceived unfair taxation and lack of representation, contributing to escalating tensions leading to the American Revolution.

 

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Boston Tea Party

Tax Project Institute

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