US Government Spending Must Fade to Black
Author: Joe DelCasino
Four key numbers – government spending, federal tax revenue, the budget deficit, and national debt – provide important and sobering insight into our current fiscal health. 2010’s raw numbers are dramatic and mind boggling to the point of distraction, but relating them to our $14.3 trillion Gross Domestic Product (GDP) make them relevant, easier to comprehend, and relatable to one another. Those ratios are as follows: government spending/GDP is 28%; federal tax revenue/GDP is 16%; the budget deficit/GDP is 12%; and the national debt/GDP is 85%.
Those ratios are horrendous, especially considering, for example, that the European Union requires members to have national debt and budget deficit ratios less than 40% and 3%, respectively, when they join the union, considerably lower than ours at the moment.
The current budget deficit is 12% of GDP (28% -16%); and will add to our national debt. That deficit means that our economy is currently borrowing 45 cents of every dollar it spends, and at that level it should push our, http://joedelcasino.blogspot.com. Books are available at http://www.Xlibris.com.
Source: ezinearticles.com
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