The Economy of the Future

This week, I was not able to do enough research, because I was in a trip for a school club. However, from the research I did after I returned, and from what I have learned so far from my AP Macroeconomics class, I have learned about what people expect the world to look like economically fifty years from now. Many sources indicate that the economy is getting better slowly and that we have successfully come out of a recession. However, many economists say (including my teacher) that this past recession is nothing compared to what we will have to deal with in the future. My economy teacher explained it to our class through the following story: “Pretend that we all are in a plane. Not only are we flying, but we are sitting in first class. Though we have the luxury of flying in style, the plane is actually headed directly downward, and we will crash and burn very soon.” I first laughed and took it lightly, but when he showed us the statistics, I realized the urgency of the problem that we were facing. At this moment, America is in a debt of $18 trillion (FRED). The worst part is that the yearly deficit in America has still not stopped, so the debt is growing. In order for us to rid ourselves with this huge problem, every person would have to give the government around $51,000(including the child just born now). The whole class had only one though after hearing this: how do we solve this problem in the future? There are many ways, but the simplest solution that we were told was to increase taxes. In fact, he said that he could see the next generation paying as much as 50% taxes in the near future.

            Next week, I hope to find new sources that give me more perspectives on the economy of the future, as well as new solutions to the huge debt America is in.