IB SL Economics Debt Boomerang example and explanation

1. DEBT
BOOMERANG
Debt creates problems for the developed countries. Susan George
argues that the developed countries themselves would thus
benefit if debt were eliminated

2. Lists of Debt Boomerang
 Environmental damage
 Higher Unemployment
 Drugs usage
 Increased Immigration
 Higher Taxes
 Increased level ofconflict

4. Environmental Damage

5. Impact on United States
 Hurricane Katrina
 Heat-related illness and deaths
 Decrease in air quality
 Illness from contaminated shellfish due to
harmful algae related to warmer coastal water
 Other diseases caused by groundwater
contamination (extreme rainfall and higher
water temperatures)