America's Current Economic Problem. Please Help!?

Question

Is americas current economic problem due to the supply and demand ratio? Please Explain.

Answer 1

America's current economic problem comes from get rich quick schemes and peoples greed. No one will forfeit their own profit for the well being of another person. the greed problem also extends into the average citizens life. Jane Smith has maxed her three credit cards and has racked up a $300 000 mortgage because she needed a nicer house, car and vacation package. Then she can't pay it back because she doesn't actually have the money. Then almost every single person in a country starts to do this. A dream deal for credit card companies and banks. Look at all the profit on interest they can make? It's only a matter of time when it comes to be that most people can't pay back their loans so companies have to start forcing people to pay it back in some way or an other. Then people start losing homes, things. People can't buy anything because they don't have any money. Any money they do make at work they're using to keep their homes and current lifestyle or trying to pay off debt. So people are not buying as much stuff anymore. Less purchasing means less jobs. less jobs means more people not being able to afford things. which means even less jobs and production. which means more houses on the market. the more houses on the market the farther their prices go down. It's all one big Vicious cycle  We can blame credit card companies and banks for the fall of America, but it's our own greed and stupidity that has brought America to her knees.

Answer 2

You have debts but you don't have money. There is a great money demand but due to scare amount of money supply, people face a problem.