Friday, July 16, 2010

Could U.S. Go The Way Of The British Empire?

Debt, deficits, and their impact on the ability of nations to maintain government spending levels is a burning issue around the globe, as national leaders try to recover from a deep recession and not break the bank.

However, according to the chart below, it's clear that as debt levels increase, the power of a nation is put at risk. According to Business Insider, the British Empire might have a thing or two to teach us upstart colonials. From World War I to the end of World War II, the British Empire's debts increased, much of it to a growing power in the U.S. that supplied it with weapons.

For the U.S. today, China could be that supplier of goods, as the U.S. government racks up debt on the way to its decline. Kinda scary, huh? Of course, this fate is far from certain, and there were many more reasons why the British Empire declined than just debt levels. However, it does make a clear statement when a nation's legislature (actually, the GOP) is unwilling to extend jobless benefits for fear of increasing debt, when such benefits are actually -- dollar for dollar -- the best investment a government can make to encourage spending. Oh yeah, it's also the right thing to do.

Copyright 2010 (text only). The Zaftig Redhead. All Rights Reserved.

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