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9/11 Effect on the Budget
9/11 Effect on BudgetAfter the 9/11 attacks, the United States government increased their miltary spending tremendously in order to combat terrorism. The United States launched more than a decade long War on Terror which costed billions of dollars. The budget for Homeland Security increased from $16 billion to $43 billion. This has occured without more income, which has caused a deficit in the budget. -
Stock Market Crash
The stock market crashed in 2008 due to exposured subprime loans and credit default swipes. Caused a number of banks America to go under, many businesses went out of business, the value of stock decreased, and it was much more difficult to get a loan. Those who were investing in a retirement plan had savings in the stock market and then lost that money going towards retirement, so they lost their savings and it made it more difficult to get those back/start savings over -
Obama elected president
Change in leadership
Barak Obama was elected president in 2008. The presidency changed from republican George W Bush's two term presidency to a now democrat president who would later go on to serve another term in the oval office. While the deficit continued to get better under the Obama administration, the debt continued to increase. -
Bernard Madoff's Ponzi Scheme
Bernad Maddoff's Effect on America's Savings - For over two decades, Bernard Maddoff defrauded investors of over $50 billion until 2008, when he could no longer honor cash requests due to the stock market crash. As a result, many investors lost their life savings, including very rich and high profile people. Because of this event, many Americans became scared to invest their money; as a result, less money has been saved. -
Internet Economy and Trade
The Internet and America's GDP Over the past decade, Internet use for online purchases, social media, and other information has increased exponentially. In 2011, retail and traveled-related purchases made online increased 12% to $256 billion. In 2010, the Internet economy accounted for 4.7% of the country's GDP, and it is still gorwing. This will improve the economy and the trade balance. -
U.S. Trade
U.S Trade Change in 2013 From 2011-2013, the United States' trade balance has improved by $61.2 billion. This is due to importing less goods and petroleum from foreign countries. America has increased its goods and services imports as well, which has improved its overall trade economy in the past couple of years, and it can help to stimulate the economy and ecrease the debt. -
Change in the Federal Reserve Leadership
Change in leadership
Janet L. Yellen became the new Chair of the Board of Governors of the Federal Reserve System on February 3rd, 2014. The position was previously held by Ben Bernanke from 2006 to 2014. She has been working to stimulate the economy and decrease unemployment. She has been a professor at the University of California-Berkeley for many years, so she has a lot of knowledge on the economy, and her new leadership may shift the flow of the economy in the coming years. -
Obama asks for $5.3 Billion to fight Isis
Budget
The US has already spent over $2 billion to fight Isis, and now president Obama is asking for another $5.3 billion to combat the terrorist group.
