Debt-Driven Prosperity Leads to Bankruptcy

If someone were to try to explain what were the causes of the dire economic conditions America is facing, the easiest way would be to say that Americans live in an economic fantasy world that is by no means sustainable. Today, GDP figures were released showing lousy 1.2% growth for the United States, yet the media remains excited about how the housing market is coming back and everything is better. It doesn’t take a rocket scientist to figure out that things aren’t getting better, and if anything, this could only be called the new normal if it doesn’t get worse. Right now, Americans should file for bankruptcy to eliminate the unsustainable debt they have accumulated, but instead they are robbing Peter to pay Paul by taking out new credit cards and personal loans so they can keep kicking the can in the future. In 2012, the Fed reported that the average American has $ 16,000 in credit card debt. Whereas in today’s economy, $ 16,000 doesn’t sound like a lot, but four years earlier that number was just $ 4,000. The reason many Americans should file for bankruptcy and don’t is that banks are making credit available to them. persons. In 2010, the United States saw a record number of people who filed for bankruptcy because they had no other choice and were on the ropes. At the same time, many of these people lost their homes to foreclosure and had to stop aggressive creditors who might have been tied to the home through ties.

Everyone wants to know why all this is happening, but no one really looks at the root of the problem. The government continues to gain power and control by placing people in welfare programs where they need them to survive. This was not the intention of how the country was founded, as the founders wanted a small government. Many people are currently unemployed and as long as their unemployment insurance continues, why look for work? Because unemployment could pay them as much as it would work. Add to that the ability to borrow more money from creditors and you have a group of people who should be filing for bankruptcy, but refuse to do so. I understand the dilemma, but it still doesn’t solve it. With taxes going up and pay going down, there is no real incentive to work hard anymore. With all the new regulations, it is almost impossible for small businesses to even get started, thus eliminating the American dream. The federal government keeps telling everyone how to live, but it would be nice if they led by example. The fighting continues and the government continues to raise the debt ceiling as US debt approaches $ 17 trillion. Someone recently made an interesting point about how the Fed has been printing US dollars endlessly and why they need to raise taxes if they can just print to get out of debt. It doesn’t seem to make any sense, except that America’s middle class will soon disappear if people don’t take responsibility for their own financial actions.

Until the 1970s, Americans prided themselves on being debt free and living within their means. Once the 1970s rolled around, credit cards were sent to everyone, even if you didn’t apply for them. Creditors stepped up advertising campaigns to be able to buy it now and pay for it later with plastic. It almost seemed like free money and many go overboard with filing for bankruptcy. The last generation knows no other way to live than on credit. The average college graduate leaves school with a debt of $ 25,000. They don’t even have a job yet and are already enslaved for life. The deciding factor for young adults dropping out of college is the student loan debt they have acquired. After graduation, if they can’t find a job, it doesn’t matter that they still have to find a way to pay off that debt. Thinking of filing for bankruptcy? It is not a possibility, it is almost impossible to file bankruptcy for student loans. While everyone believes America is a land of opportunity, no one really knows the dark side of how the only thing that drives this economy is debt-driven prosperity. Everything is false, most of the so-called millionaires, they leverage beyond belief and if their line of credit is taken away, it’s game over. What’s wrong with going back to the way your grandparents lived and trying a debt-free lifestyle? Even if that means filing for bankruptcy to put an end to all this debt, in the long run it will add a dash of happiness and relieve a lot of stress.