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Most Americans agree that their economy is not sound, and some had previously placed their hopes in the former president Donald Trump, to restore America’s glory, and this is what President Joe Biden tried to do, as his administration spent two trillion dollars to revive the economy, but that led to increased anxiety of Americans, with the national debt reaching a terrifying 32 trillion dollars.
And it shows no signs of receding but continues to rise, as the government prints and spends more money than it receives in terms of taxes and revenues.
Also, the tax policy is complex, and includes several exemptions that reduce its effectiveness, in addition to the cost of fighting recession and financing wars. Borrowing costs for companies and individuals.
Experts believe that a certain level of national debt is necessary to finance important government programs and investments.
Others believe that there is concern about the long-term sustainability of the US national debt, and its continued escalation, and this may eventually lead to a financial crisis or a loss of confidence in the US economy, with the inability of successive administrations to address the deficit, increase taxes, and reform entitlement programs, but there is always political opposition.
It is difficult to predict how long the United States can sustain a high level of national debt. With all this, we see that the majority of major economies and investors are still willing to continue buying US government bonds, as long as the economy continues to grow, and the government is able to service debt payments.
And the fact that the US economy is the largest in the world, the world views it as a safe haven for investors looking for a reliable place to deposit their money, especially since the US administration has the ability to print its own currency, and this gives it a degree of flexibility in debt management.
However, this can also lead to inflation and other economic challenges if not managed carefully.
In conclusion, all this concern about the US economy, expressed by novices and experts alike, including commentators and auditors, such as Talal Abu-Ghazaleh and others, hides in fact, an amazing, semi-permanent, yet underappreciated success story.
The US economy is still the largest, richest, most productive, and most importantly the most innovative in the world, by an impressive number of measures, its competitors are panting far behind it, and the best evidence of its wonderful role during the Corona pandemic, and what may affect the world from future epidemics, as America is the only one that will be at the forefront, capable of disbursing billions, without hesitation or financial difficulty.
In Western proverbs it is said that size matters. America is fortunate to have a large consumer market that can easily absorb research and development costs.
It is also a deep “capital” market, through which any financing necessary for any project can be collected.
Perhaps China in the future, and perhaps India, will be able to boast one day of the purchasing power of its societies, which gives it an advantage that the rest of the major economies lack.
All those who warn of the collapse of the dollar and the impotence of the US economy, like Talal and others, and keep most of their money, if not all, in dollars, are similar to those who demonstrate at night in front of the US embassy and burn American flags, and line up in front of it in the morning in front of their embassy looking for migration.
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By Ahmad alsarraf