America has a debt of 260 lakh crores! What is the reason, ways to avoid default and possible consequences?

Whenever it is talked about the most developed countries in the world, the name of the United States of America is kept at the top. America is the most developed country in the world. If we look at the economies of the world, America is at the forefront in this matter too. The US economy is the largest economy in the world. America is also called a superpower. But at this time America is facing a big crisis. And that crisis is debt. America is buried under the burden of debt and every day this debt is increasing instead of decreasing.

Talking about the debt owed to America, it is not a small amount. America has a debt of about 31.46 trillion dollars. Its value in Indian currency is about 260 lakh crore rupees. This debt has taken many years to accrue. Before the Corona epidemic, America had a debt of 22.7 trillion dollars, which increased by about 10 trillion dollars in just 3 years.

Ever since America became a separate country, debt has started on it. America was discovered as a country on July 4, 1776. After that, on January 1, 1791, the debt in America was calculated. At that time America had a debt of about Rs 620 crore, which kept on increasing with time. There were many reasons for the increase in this debt. These include Great Depression, Civil War, World War 1, World War 2, America's military involvement in Afghanistan, Iran, Russia-Ukraine, and other such wars, expensive healthcare, low tax revenue as well as Corona epidemic in America. The debt increased. Apart from this, there were some other reasons as well, due to which America's debt kept on increasing.

In fact, many governments around the world take loans to meet the expenses. This loan is taken from different countries as well as from the World Bank. But when the expenditure is more than the income of the country, then due to the imbalance between the expenditure and the income, the debt goes on increasing and the same happened with America.

The debt in America has increased so much that now there is a danger of default on them. When the government of a country is unable to repay the debt, then it is termed as default. In such a situation, the economy of America can have a very bad effect and it will also have a bad effect on the people of the country.

In America, the government of President Joe Biden is engaged in all necessary measures to avoid default in the case of debt. Biden and his party are trying to persuade opposition lawmakers to raise the debt limit. Actually, there is a fixed limit of debt in America. But opposition MPs are adamant on the issue of spending cuts. To avoid default, America will have to increase the debt limit and pass a law for this.

If the law is not passed in this regard, then America will face a big economic crisis. To avoid this, America will have to implement the 14th Constitutional Amendment, according to which the legality of America's debt cannot be questioned. But this too will not be easy, because it can create a constitutional crisis in the country.

If America defaults, the country's economy will be badly affected. Not only in America, but it will also affect the global economy as well. Many jobs in America may hang in the balance due to which unemployment will increase and there may be a danger of recession. Not only this, but it can also have a bad effect on the American stock market. In simple words, in case of default, the back of America's economy will be broken.