Here is the synopsis of our sample research paper on DEBT AND SPENDING: TROUBLE FOR THE ECONOMY?. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper attempts to answer the question as to whether the current rising consumer debt (not to mention the U.S. trade defecit) will have a dire impact on the U.S. economy. Footnotes used. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: D0_MTcondeb.rtf
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Unformatted sample text from the term paper:
in his words, "deeply addicted to spending" is working hard to run up even higher levels of debt than ever before. This debt is being created, notes the reporter, so
the average Joe or Jane can live beyond his or her means. Part of the problem, he points out, is that cutting of interest rates isnt encouraging savings, but rather,
is encouraging the consumer to spend more. Lahart notes that, furthermore, such spending, while keeping the U.S. economy afloat, is also creating
a huge amount of economic debt. "U.S. consumer spending accounts for around 70 percent of U.S. gross domestic product," he points out. "So nobody wants to see the consumer falter,
and they have been doing their darndest to make sure that doesnt happen." The problem here, according to the article, is that
while the Federal Reserve want a strong economy, the only way the consumer can boost the economy is through continued accumulation of debt. With a Fed rate hike -- and
the following potential decrease of consumer spending -- a recession could occur. According to Schmitt, this isnt necessarily a new problem or
concern1. She points out, for example, that by measuring the ratio of consumer installment credit to disposable income (which, in her words, is a "useful economic indicator" for determining the
amount of debt in a society), there tends to be no evidence to support the idea that growing consumer debt means a slowdown in the economy2. Rather, she points out,
an increase in consumer indebtedness is a "normal occurrence" when it comes to economic growth and expansion3. She also points out that
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