Summarize the 2 current events in todays news pertaining to one of the topics co

Question

Summarize the 2 current events in todays news pertaining to one of the topics covered in the chapters. The 2 current events must be typed, double spaced, spell checked, with a reference(economic related news article found online no more than a week old) for the source of the information. It must be at least 2 pages (1 page per current event). You must summarize the current events and EXPLAIN what economic concept it pertains to and WHY it pertains? Reference the sources of your information in the document. You need to write at least one page per event. Only ONE/TWO economic topic(s) per event/article.

Article 1: https://www.forbes.com/sites/michaelfoster/2017/11/08/federal-debt-is-reaching-20-trillion-and-i-dont-care/

Article 2: http://money.cnn.com/2017/11/06/news/economy/fed-leaders-retiring/index.html

Concepts:

Public Debt

Federal Reserve

Explanation / Answer

Article 1: Public debt

Taking loan is considered to be a bad option. However, If this loan is taken by a country who has potential to increase its output taking loan can be a good option.

American public debt is about $19.84 trillion and may reach $20 trillion by the end of 2017. The US now owes $60,890 per American. Ameican debt is more than it's GDP. This can be a sign of worry for many people but the article explains it is not.

As Feds are raking in about $11.5 trillion per year from taxes, fines, investments and other sources of income it can repay the loan in less than two years. In addition to this, If we estimate the total balance sheet of households and nonprofit organizations, as well as the total assets of US banks, makes total worth of $128.18 trillion and that makes a loan of 20 trillion dollars laughable.

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