Steve C asked in Social ScienceEconomics · 1 decade ago

Do you think it is possible the US economy could collapse?

..Like third world economies collapse from declining strength of the economy and massive devaluation? With all the billions were are outsourcing and spending in Iraq? Is there any danger from a complete collapse?

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    Anything is possible.

    But, I don't think it will collapse -- hopefully the new president will revisit out-sourcing American jobs to foreign countries. That will mean more taxes paid to America, by Americans, who now have jobs because the coding or support is not being done in India or other countries.

    One of the things I've worried about with Democrats in the presidency is their tendency to start new projects that increase the deficit. But I DO NOT think anyone could have done worse than Bush.

    We need a president, and a few stiff backbone business-wo/men, who will say no and stop paying for work not completed.

    Also, it is time that the government work on helping America's poor and uneducated and starving families., rather than take on the responsibility of the world. Certainly we help, but at a ratio equal to other countries, who are now wealthier than we are.

    Can the changes be made in time. Probably.

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  • 1 decade ago

    Could the U.S. economy completely collapse, yes. Is it likely to happen, no. The FED is doing everything in their power to revive the economy, which should help but will take some time. Also, the economic stimulus package that will be hitting the public in May will also have an impact. Besides focusing on the FED the entire World is a different place compared to the 1920s when the U.S. suffered from The Great Depression. During the 1920s, the U.S. was the only healthy advanced economy at the time, which was the backbone of the world economy. During the 20s the U.S. contributed more than half of all world output, which is HUGE! So when the cash came in 1929, not only did the U.S. fall into a depression, but the world did also. Now, the U.S. still makes up a huge percentage of world output around 27%(as of 2006) but other countries also make huge contributions such as the European Union, China, etc. The U.S. economy is obviously slowing, but at a much faster rate than the world economy because the other industrialized nations are "picking up the slack", which in turn will help the U.S. economy revive itself quickly.

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  • Galit
    Lv 4
    4 years ago

    To be honest, I don't know. I expected the DJI to be around the 2003 levels by now and it has not happened despite everything. Frankly, I am quite amazed at the resilience of the market, and I think it's been buoyed by all the foreign investments propping up giants like Merril Lynch from the developing nations in the East. I have no doubt that the DJI will go below 10,000 this Summer - nearly all the forecasts are predicting it, and if/when it goes below 8000, that will be the turning point - a collapse of the market or a rally. The US economy is in serious trouble - there's no doubt about it - but as in the years past, it might stave off a collapse by borrowing from other countries again. Somehow, I doubt anyone would be mad enough to lend Americans money this time after the sub-primes frauds, but you never know.

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  • Anonymous
    1 decade ago

    It will continue to decline, until the US moves with the times.

    Many countries tightened their belt year ago when the whole "Fair Trade" debacle raised its ugly head led by the US.

    Those countries diversified and switched to other enterprises. The result was the ever lowering of wage rates and working conditions, but the nation staved off financial hardship.

    It is time the average US worker realised he is no longer going to get paid $25 per hour but closer to $20.

    Note I am only guessing at what the average US worker gets when I say $25, and I am talking about jobs like clerical workers, cleaners, shop assistants, not the National average. Most are not even close to that pay rate.

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  • Anonymous
    1 decade ago

    Hello

    US Economy could not fully collapsed. But in future there will be no growth of US Economy. The Economy will raise very Slowly.

    Reason

    1.Rice of Crude by OPEC

    2.All Middle East Contries are against USA Policy

    3.Brazil refused to give Cruder and asked USA oil company to be quit from Brazil

    4.Daily killing of Students and Public in America. some body is comming and killing sombody and killing themselves.

    5.Recent Floods, Earthquake, Cyclone

    and so many reasons

    subbunaicker@yahoo.co.in

    Source(s): from TV/News Paper/Economic Times
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  • 1 decade ago

    Yes, I do fear that! I have family in Mexico that went through the massive devaluation of the peso and now they're pulling money out of American banks because they're afraid we're headed the same way.

    It's possible, surely; I just hope it's not PROBABLE.

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  • Anonymous
    1 decade ago

    Not really...it could on paper...but in reality no, not like in the crash of '29....maybe like the crash of '87.

    It is time for a market correction again...but the GNP is still strong and the assets to debt ratio is still in favor of a stronger economy than the media reports...

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  • Anonymous
    1 decade ago

    it already happened once, the great depression! but we got back up on our feet. its scary cos were not the only world power anymore. theres china now & saudi arabia. but jus kno that the US is never gonna completely be in ruins tho. we got some hella intellegent people in this country, well somehow end up on top again. what makes us so amazing is that we help otha countries like iraq get themselves together, even at the cost of our people.. thas what you call true character

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  • Anonymous
    1 decade ago

    No, if it does then it will take other countries with it (The great depression). These things go in cycles. The dollar will regain some of it's strength soon. I have a feeling.

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  • 1 decade ago

    If history repeats itself (like it always does) then absolutely. Even outruling the option of "anything's possible"

    We are the modern day Rome; and look what happened to Rome.

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