Other than the problems of today, what would be causes of debt earlier in History?
Today, there have been many problems with the Nation's money; most of the problems trying to be pointed at Obama and things related to such. Well let's just say that we exclude him and look at the real facts. What would truly be the causes of debt that is happening today that happened back then?
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Debt is nothing more or less than the irresponsible management of money. Governments can go into debt for many reasons, but it usually boils down to trying to oversee too many things, being too involved in other countries' affairs(especially militarily), and flawed ideals that can't be supported. For instance, welfare programs. Everyone agrees that having something to help people who are struggling is good as an idea, but what if you can't pay for it? No government can take care of all its citizens, nor should it. By attempting to provide welfare to everyone, a government takes money from some and gives it to others(while wasting or losing some of it along the way). This can cause catastrophic results by causing those who are doing well to fall into the needy category. Side: Financial Irresponsibility
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Debt can be the result of responsible uses of money. Leveraging can have very positive effects, such as a faster rate of growth, hedging against in-liquidity, etc. I can actually make money by having debt. Its because I can use debt to consolidate cashflows so that I earn interest on what I normally wouldn't. The government having debt, just like a business having debt, or a person having debt, can actually be a very good thing and a sign of responsibility. Welfare is a management system of fundamental flaws in our society, such as the natural rate of unemployment, it's current form is not the most efficient but it is better than it's absence, unless you want a lot of crime, more death and pain etc. Side: Financial Irresponsibility
Are you talking about what historically caused the current debt? 2 of the longest wars in our history were never bothered to be included in the budget and the second or third largest tax cut in US history to the very top 1% or 2% all at the same time more or less, is the only reason we as a country are in debt now. We actually had a surplus before those shenanigans. Side: Financial Irresponsibility
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