Rome Vs United States Part 4

Shep115 By Shep115, 6th Mar 2010 | Follow this author | RSS Feed | Short URL http://nut.bz/ve8ly6bb/
Posted in Wikinut>Writing>Essays

Why the United States is going to fall apart like the Roman Empire

Rome Vs United States Part 4

Inflation is a part of every economy it just effects each one in a different way. If an economy can manage its finances well then it will be fine and have little inflation. Like all great powers they have the power to print their own currency. The Roman government was no different than any other in the history of the world. To attempt to pay for its obligations, it simply created more money. This can be done in over time all countries tend to print money in order to counteract a slow economy but if over done it cause inflation. That will cause the value of the currency to sky rocket and become useless. This debasing of the currency was seen in Rome's most common coin. The denarius had 90% silver content during the age of Nero in about 60AD. Two centuries later, its silver content was only 0.2 %(citation). The most common thing that was bought was wheat; it was the base for everything from beer to bread. When roam was at its peak It is estimated that a measure of Egyptian wheat that once cost 8 denarius in the first century, rose in price to 120,000 denarius. (citation) Major inflation causes the price of everything to go up since its value has gone down.
The united states in venerable to inflation also, but they account for a little bit of inflation each year. They say that he current rate of inflation is about 3% each year and goes up and down each year depending on how the economy is doing. Just as the roman the U.S.’s currency is compared to other countries in 2000 one U.S. dollar was worth 1.21 Euros. In 2009 one U.S. is now worth .79 cents of a euro, it now takes more United States currency to buy a euro. The government knows it is backing itself into a corner that will leave no way out. To pay for its towering obligations and future promises it can only raise taxes or inflate the economy. There is always hope that the economy can continue to grow and produce enough tax revenue to out-pace the financial burdens. But this will not occur when tax dollars are wasted on military and social programs. And the government insists on spending more than it takes in thus creating a negative cash flow. Somewhere down the line someone will have to pay off these gargantuan debts.

Tags

Historic, History, History Of Rome, History Of United States, Rome, United States

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author avatar Shep115
A college student. I like to write about everything that comes to my mind.

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