This debt has been accumulated over the past thirty years and has been growing much faster than the overall level of GDP. This poses serious threat for the economy as sooner or later this debt bubble will burst just like the housing bubble which led to the financial crisis in 2007. The bursting of the debt bubble will cripple the entire economy as it has become dependent on borrowing and debt. Nearly all the transactions of the economy is done on a credit basis, adding to the overall national debt. A burst of this bubble would affect the increasing standard of living being enjoyed by the citizens of America today.
US Budget Deficit and Government Debt vs. Japan’s The United States Budget Deficit and government debt is skyrocketing and almost exceeding $1 trillion dollars. In context of macroeconomics and the United States economy, the definition of debt is the total amount the government owes while the definition deficit is how much one spends compared to how much that person earns. For the United States, the budged deficit is nearly $60 billion dollars and on track to exceed $1 trillion by the end of the year. The United States government debt is currently at $15.8 trillion dollars. This national debt has continued to increase an average $3.92 billion per day since September 28, 2007.
The year after, it dropped by roughly 200 billion, only to rise up again to 1778.63 in 2012. 1 The reason why GDP is so closely related to the strength of the economy is because it tracks all final spending. Since final spending relates to how much people are buying, how much the government is spending, how much investors are investing, and the net value of imports and exports, there is a strong correlation between the GDP and the economy’s strength. Although the GDP is a great measure, there is a lot more to consider such as inflation and unemployment. Inflation is also a very strong indication of economic growth as it represents the growth of the prices of goods and services.
Despite a terrible current account deficit (USD800), the USD is heading towards a 140 JPY/USD level. There are 2 main reasons to explain the USD level in 2005. The first one is that thanks to a rising interest rates policy led by the FED (4.75%), the USD rose. Indeed high interest rates attracted Foreign Direct Investments (FDI), for example when the oil price increase a lot of oil exporting countries received a surplus in dollars and invested this surplus in US treasury bonds, and it helped to keep a strong USD. In the same time, the bank of Japan (BoJ) kept its interest rate close to zero.
Researchers, supported by Deloitte, Goldman Sachs, Pfizer and Time Warner, conducted 2,952 surveys of working-aged men and women and gathered qualitative and quantitative data to conclude that many Asian-Americans, whether immigrant or native born, find it hard to "fit in" the upper management ranks. The projected percentage increase between 2008 and 2050 in the population of people who identify themselves as Asian in the United States will increase by one hundred and sixty-one percent, which compares with a forty-four percent increase in the population as a whole over the same period of time. There will be approximately forty million United States residents by the year 2050 that identify themselves as Asians and hold about nine percent of the population in the United
GDP composite of china 2009 Physical capital accounted for almost 50% of total growth and labour for only a little over 10% over recent. Total factor productivity contributed the remaining growth, partly driven by the reallocation of labour from the rural sector to manufacturing. China’s savings are high but it is not the household saving, it is unchanged since 1990's, therefore the consumption is 35%. The corporate savings have increased due to the firm tendency to retain earnings. According to World scope data, over half of listed Chinese industrial firms did not pay a dividend over the past decade.
In 2009 the population was 1.16 billion people with a median age of 25 and an annual growth rate of 1.4%. Population control campaigns have successfully slowed down the growth rate 17% in the following years. There are 28 states and 19 territories with citizens who speak primarily Hindi as well as English as a second language. In 2009 India’s GDP was 146 times greater than in 1990 but there is a clustered distribution of wealth with 4 states accounting for 30% of the total GDP. 37% of the population is impoverished and over 80% lived on less then $2 per day.
K (2008) the Anatomy of Social Security and Medicare. Independent Review, 13(1), 5-27 Retrieved from EBSCOhost. Coile, C. C., & Levine, P. B (2011). Recessions, Retirement, and Social Security. American Economic Review, 101(3), 23-28.
According to the data from the Ministry of Finance, the highest budget deficit is in the year 2010 (ranging from year 1999 to 2011); 7% of GDP equivalent to USD 13.3 billion. This is due to the continuing effort of Malaysian Government to boost the economy after the financial crisis in late 2008. Figure 1.0 shows the Malaysia Government Budget for the period of 1999 until 2011. The figure shows
It includes consumer debt and mortgage loans.” (Canocchi 2014) The UK and the US have similar patterns of consumer spending and borrowing and subsequently similar patterns of household indebtedness. In the UK, the average household debt has more than “quadrupled since 1990, despite the interest rates being at historic lows”. (Canocchi 2014) In 1990, total household debt in the UK stood at £347billion, but it rocketed by 314 per cent to £1,437billion in 2013. (Canocchi 2014) The US has similar shocking statistics in relation to their much larger population. In the April-June quarter 2014 the total household indebtedness in the US (including mortgages, student loans, car loans, credit cards and home-equity lines) was estimated at $11.63 trillion dollars according to The Federal Reserve Bank of New York.