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Usa Debt

Autor:   •  January 5, 2019  •  1,453 Words (6 Pages)  •  4 Views

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Nevertheless, it is not necessary to exaggerate this threat - the largest state companies, “Gazprom” and “Rosneft”, even in the conditions of falling oil prices, have some constant currency earnings, while Russia has a positive trade balance and significant reserves.

Continuing to shift the situation to the economy of the household, we can make such an analogy with Russian and American families. What does a Russian do to buy an apartment? He pays a huge interest for a mortgage or for years, saves money at home to study for his children, knowing, that they will greatly depreciate during this time. The mortgage rate in Russia is 10-12%. The mortgage rate in the US is 3.5-4%. Americans often live on credit, but they have them cheap. Thanks to lending, they invest money in their own economy, which is developing and ensures stable service of external debt. As a result, an American not only gets a cheap house, but still can free money and invest in a business.

What do 90% of Russians do when they have money? They save money or take a loan to invest money in a car, an apartment, which then draws out all their money for repairs, maintenance, and communal services. How do people in the West? They invest money in business, in shares, in securities, they open something. And flats are rented. Money must work, then a separate family and a large state will live well. Magnificent book on this subject is, called "Rich Dad, Poor Dad."

The US is called the "World Gendarme". And, actually, this country has a colossal influence on the world economy.

Every few years, Russia shows new weapons, and the United States - a new "economic miracle". There were cases, when the accounts of the American company “Apple” had more money than the whole Russia. The US market economy with a huge public debt, fueled by hundreds of successful firms, is more sustainable than Russia's raw-material bureaucratic economy with a small debt.

A planned economy, state intervention in the economy - all this is unprofitable and all countries, from the USSR to Cuba, have proved that such a policy leads to an impoverishment of the population. Adam Smith wrote that only countries with advanced technologies can claim a prosperous existence. Russia, having sat down due to its bad strategy for the oil pipe, chooses the traditional way of trade in wood and fur coats.

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