Good and Bad Deficits

The opposite side of the high absorption GDP ratio is an equally high trade deficit.

A deficit?

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.

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.

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 Energy Deficit

Budget deficit

As noted in para. 65 below, the deficit may have actually been higher by up to 4.5 million.

As noted in para. 65 below, the deficit may have actually been higher by up to 4.7 million.

The Sino American Trust Deficit

The Global Trust Deficit

Statement XLII (concluded)

(Signed) Jean Pierre Halbwachs

The overall budget deficit is still predicted to be 4.1 of Greece s GDP in 2013 a substantial improvement compared to 2010 but still far from fiscal balance. The difference between the overall deficit and the primary deficit implies that the interest on the Greek national debt this year will be 4.1 of GDP.

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.

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

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

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

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

If investors are unwilling to finance the French budget deficit that is, if France cannot borrow to finance that deficit France will be forced to default. That is why the market treats French bonds as riskier and demands a higher interest rate, even though France s budget deficit is 5.8 of its GDP, whereas Britain s budget deficit is 8.8 of GDP.

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.

A public debt crisis in Japan (as the combination of recession, deflation, and high deficits drove up the debt GDP ratio).

We have vast budget deficits.

Europe s Pointless Deficit Targets?

All Stimulus Roads Lead to China

The business is in the red.

3. Projected operating deficit (1 less 2)

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.

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