Overview[ edit ] CBO: Federal spending and revenue components for fiscal year Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources. Many of the debates about the United States federal budget center on competing macroeconomic schools of thought.
Japan, Southeast Asia, and South Korea. But every nascent superpower needs to get the fundamentals right at home first. Japan comparisons get the most attention. If you walked into any American bookstore inbest-seller racks were loaded with titles handing the future to Japan Inc. Well, not so much. This institutionalized misallocation of funds warps incentives to build a vibrant private sector focused on innovation, productivity and global risk-management norms.
Beijing no longer has a pegged currency, but it obsessively steers the yuan in ways that distracted Thai, Indonesian and Malaysian officials back in the s.
Likewise, Beijing suffers from a quantity-over-quality dynamic when ginning up gross domestic product. Around the nation, dozens of cities that the outside world has barely heard of are racing to build six-lane highways, international airports, massive stadiums, shopping centers and white-elephant museums that will go underutilized over time.
Twenty years on, Southeast Asia is still grappling with the fallout from its boom times. The Korean comparison, though, may be the most tantalizing. Two months ago, these conglomerates were the pride of China Inc.
Beijing now fears how their excesses, all financed with debt, imperil the national balance sheet. China, it seems, has a Korea-like chaebol problem on its hands. The reference here is to the giant, family-run conglomerates that toppled Korea in and still hog up most of the economic oxygen today.
For an economy growing about 6. But as Japan, Southeast Asia and Korea taught us, beware official data when national pride is at stake.The national debt level of the United States has always been a subject of controversy.
But, given that four consecutive years of $1 trillion budget deficits () has pushed the national. The Camp Fire has sent record-bad air into the Bay Area. Jul 02, · Read the latest articles and commentary on the deficit and national debt at US News. Debate Over U.S.
Debt Changes Tone Fights to slash the amount of borrowing are long gone; instead the argument is whether capacity for more has increased.
In particular, it will be those countries that have dollar-denominated debt and those that import oil that will suffer.
For example, Setser writes, over several years, the Argentinian government. The national debt is a representation of saved dollars, and it represents PEOPLE using their earned us dollars as they see fit. Parking the .