Output growth in the US remains anemic, and the economy continues to face three significant deficits a jobs deficit, an investment deficit, and a long run fiscal deficit, none of which is likely to be addressed in an election year.

Good and Bad Deficits

So, how should the US economy s jobs deficit, investment deficit, and long run fiscal deficit be addressed?

Large current account imbalances continue to characterize the global economy, and a lower dollar would contribute to reducing the United States deficit.

A deficit?

That is how the turnaround of the economy took place by reducing the fiscal deficit and converting the external balance of payments from deficit to surplus.

Fiscal deficits have been reduced by half in the past five years, and external current account deficits are down to 2.5 per cent of GDP.

The deficit in regular budget cash had multiplied tenfold.

BERKELEY The United States is beset by four deficits a fiscal deficit, a jobs deficit, a deficit in public investment, and an opportunity deficit. The budget proposals put forward by presidential candidate Mitt Romney and his running mate, Paul Ryan, could reduce the fiscal deficit, but would exacerbate the other three.

The counterargument hinges on the difference between the current account deficit and the trade deficit. The current account deficit is equal to the trade deficit plus the cost of servicing the net international asset position the net rent, interest, and dividends owed to foreigners who have invested their capital in the US.

The Energy Deficit

Budget deficit

The projected deficit in the regular budget of 272 million at the end of 1997 added one more year to a pattern of cash deficits.

The Sino American Trust Deficit

The Global Trust Deficit

Statement XLII (concluded)

(Signed) Jean Pierre Halbwachs

The Bureau of Economic Research projected a deficit of 9.6 million at the end of fiscal year 2004.

America s Misplaced Deficit Complacency

America s Three Deficits

Europe needs to make up its mind

Europe s Trust Deficit

Loving America s Deficits

3. Projected operating deficit

3. Projected operating deficit

Indeed, America s trade deficit in manufactures is roughly equal to its current account deficit (the amount by which domestic investment exceeds domestic saving). So those concerned with job losses in US manufacturing should join the chorus lobbying for a much smaller fiscal deficit.

However, the key objective of reducing the public deficit in 1996 was not met, 47 per cent actual compared to 38 per cent planned (actual deficit in 1995 was 57 per cent and in 1994 it was 47 per cent).

Better Red than Dead?

What is the Deficit Endgame?

3. Projected operating deficit

3. Projected operating deficit

3. Projected operating deficit

6. While large current account deficits could be financed for prolonged periods, such deficits significantly increased the vulnerability of a country s economy to variations in international capital flows.

I propose a third, more speculative reason why it may be time to stop worrying about the US current account deficit. It is possible that, properly measured, the true deficits were smaller than has been reported, and even that, in some years, they were not there at all.

In the last 60 years, the US has underpinned global growth by running persistent current account deficits. Under the Bretton Woods system, the US ran deficits that enabled war torn Europe and Japan to rebuild.

This is where America s multilateral trade deficit enters the equation, for it has long accounted for the bulk of America s balance of payments gap. Since 2000, it has made up fully 96 of the cumulative current account shortfall.

UNDP has been actively following up on all such deficits with a view to eliminating or recovering them and will continue to monitor this matter on a regular basis.

It perpetuates deficit spending.

America u0027s Other 87 Deficits

Who Will Run the World s Deficits?

Closing America s Jobs Deficit

3. Projected operating deficit

Italy, Spain, and France all have current account deficits equal to 2 or more of their GDP. As they come out of their cyclical recessions, incomes will rise, leading to increased imports and even larger current account deficits.

Emergency relief operations resulted in current expenditures rising by 39 per cent, and the current account deficit reached US 7.9 million.

Romney has provided few details about his deficit reduction plan. But, based on what he has revealed, we know that it would increase the jobs deficit, the investment deficit, and the opportunity deficit, with negative consequences for future growth and prosperity.