American Defenders - Defending the US Economy

The US economy has been by far the largest in the world for decades now, however that position is now under threat. Partly that threat is the result of the rapid growth of China however in large part the threat is our own doing. In recent years the US economy has been slowing to the point were it is almost universally agreed that future generations will have a lower standard of living. There are things we can do to address this problem but we need to act fast.

There are a lot of threats to the US economy and the chances that it is ever going to recover and reach the same levels that it once held are pretty slim. By far the biggest threat to the economy is debt, government debt being the biggest problem. The country is broke and desperately needs to balance its budget. However this looks unlikely to happen as the result of a great deal of political fighting. The worrying part is that we were running large deficits even when we had a booming economy. That left us no money to spend to deal with the current economic problems. Of course it isn't just the government who have a problem with debt. Corporate debt and household debt are serious threats as well and largely responsible for our current financial problems.

The other serious threat to the US economy is the ageing population. As the baby boomers retire we are going to run into serious problems. The main one being that we can't afford to pay for their retirement benefits. There is also the fact that there will be fewer people working which means the economy has to contract at exactly the time that the government is going to need more money. Inevitably this is going to result in budget cuts to other things. This is going to be a problem because we already have a below average health care and education system. Cutting the budgets to these will almost certainly make them worse. Having a poorly educated and unhealthy workforce is going to have serious economic ramifications.

There are a number of other threats facing the US economy that we are going to have to figure out a way to deal with. Of these high energy prices will probably be the most problematic. As a country that uses a massive amount of energy and needs to import most of it this is a serious threat. Especially since the demand from China and other developing countries is almost certainly going to send the prices much higher in the future. Potentially alternative energy sources could address this problem but the government has shown little interest in developing this technology. One of the most widely talked about threats to the US economy is terrorism. While the threat of terrorism is real we do tend to spend to much effort worrying about it and not enough worrying about the bigger problems like debt.