RT America -- August 01, 2016
Obama leaves the country with 20 trillion debt due to his borrowing strategy
As the Obama administration comes to a close, the administration leaves the US with the highest national debt the country has ever seen, approaching 20 trillion dollars. Richard Wolff, professor of economics at The New School, says that following the bailout in 2008, the government did not want to raise taxes to match the costs of the stimulus package that would be used to kick-start the economy. Instead, the government borrowed the money from foreign governments such as China and Japan. Wolff states that the process of receiving foreign loans is only a short term solution and does not eliminate the country’s economic problems as it only further drives the country into debt. RT’s Manilla Chan reports.