At the beginning of the Ukraine Russia conflict, it was said that the entire situation could have been avoided with diplomacy on day one. [i] [ii] Sadly, Russia and Ukraine are still fighting, with Ukraine and Russia taking hundreds of thousands of casualties and the Ukraine sustaining a trillion or more in damages. [iii] [iv]
Overall, the USA and many other nations pay billions per year to maintain diplomats around the world, but diplomacy seems lost in this debate.
As we approach the one-year demarkation of the war this week on Feb. 24, it is fair to ask, why hasn't the EU or USA helped negotiate a peace? Further, the US leaders are empathetic and prayerful for the Ukraine and all those affected by war. At this point, $100 billion of taxpayer dollars have already been sent to the Ukraine.
To put $100 billion of spending power into perspective, you must evaluate the influence of money doing something good in contrast to waste, corruption or war.
To put this in perspective, here is what an investment of $100 billion could accomplish:
- The cost of ending world hunger has been estimated at around $30 billion per year. Thus, $100 billion could solve world hunger for 3 years.
- The cost of building and operating a fleet of 50 new hospitals in the United States, which is estimated to be around $100 billion. The US health care infrastructure system could be completely renewed.
- The estimated cost of rebuilding all of Puerto Rico following Hurricane Maria, was estimated to be around $95 billion.
- The cost of building a high-speed rail line from New York to Los Angeles, which has been estimated to be around $100 billion.
According to a 2021 report by the Federal Reserve, the median credit card debt for households headed by individuals under 30 years of age was $1,500, and the mean credit card debt was $2,600. As per the United States Census Bureau's population clock, as of February 20, 2023, the estimated population of the United States is approximately 332 million people. According to the United States Census Bureau's 2020 American Community Survey, the estimated population of individuals aged 18 to 29 in the United States was approximately 49.9 million people.
If you multiply 49 million young people in the USA times $2,600, you would have about $127.4 billion or $127,400,000,000 Therefore, $127 billion of debt is held by young people ages 18-35 in the USA, and these credit card debt holders are all paying about 23% annual percentage rate (APR) or more on that debt. [v]
In conclusion, young Americans are slaves to credit card debt. Unfortunately, the $127 billion sent to Ukraine for defense could have paid off all of the credit card debt of every American from the ages of 18-30 years of age and given everyone who has suffered from COVID economic stress a fresh start on life, dreams and prosperity.
Commissioner George Mentz JD MBA CILS CWM® is an international lawyer, speaker, educator, tax-economist, and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a ESQ accredited graduate body that trains and certifies professionals in 150+ nations under CHEA ACBSP and ISO 21001 standards. Mentz is also an award winning author and graduate law professor of wealth management for a top U.S. law school.
[i] Yes, The Ukraine War Could Have Been Prevented (readthemaple.com)
[ii] Tragedy In Ukraine could have been avoided – Orange County Register (ocregister.com)
[iii] A Mediator's Guide to Peace in Ukraine — Jeffrey D. Sachs (jeffsachs.org)
[iv] Russian invasion has caused $1 trillion worth of damage to Ukraine: Report - World News (wionews.com)
[v] Average Credit Card Interest Rate in America Today (lendingtree.com)
© 2023 Newsmax Finance. All rights reserved.