The United States of America is facing an all-time high scenario with one of the worst case scenarios in the credit card and debt industry. America has for long been one of the highest consumer in the world. The American consumption has been in massive proportions for the better part of the previous century, and continues to be one of the highest, if not the highest, consumer market in the world. Business ventures and corporations flock to the United States of America and try to launch their product and service in the country hoping to have and enjoy the highest profit margins in the world consequently.
High debt rates
Typically, the reason Americans are able to make such high rates of purchases and consumption is due to the credit system that is predominantly in place within the entire nation. The country has one of the world’s highest number of credit cards, and consequently, the highest credit card debt than that of any other nation. The purchasing power of the United States of America has also been at the number one spot for over half a century due to this trend. The United States of America is followed by China and India in terms of consumption. However, the credit card debt rates are nowhere compared to that of the United States of America.
Many have argued that the credit system in the United States of America had spurred on the economic crisis of 2008. The credit system in terms of mortgage was the systemic and fundamental reason for the crash. In light of the economic and financial meltdown, the spending of the nation has been one of the most challenging aspects of its economy. The spending rate has now increased drastically ever since the financial crisis, but most of the spending is debt based.
Opponents vs Proponents
There are however most of the banking associations who have claimed that this is the only way to drive up spending by the nation which could ensure America’s predominant position concerning economic prowess in the world. On the other hand, critics claim that such practices could drive us into the ground by creating a systemic and perpetual framework of debt while simultaneously stymieing economic freedom of its citizens. Liberal economists also claim that the process is weakening the economic system which could give rise to a worse scenario than that of 2008. American credit card debt now stands at just under a trillion dollars.