Stat of the Month: America Blows It

$1.4trn - The US budget deficit is the highest ever.

by
Last Updated: 09 Oct 2013

As Gordon Brown and his cronies start selling off state assets to ease the UK's debt burden (£800bn), here's something to put it all into perspective: the US budget deficit hit a record $1.4trn for the 2009 fiscal year, according to congressional analysts. This is equal to 9.9% of GDP, or $7,000 per US citizen, and blows away the previous record deficit of $459bn, set last year.

It was inevitable that a time of reckoning would come: the costs of the financial support packages and stimulus measures would eventually need to be calculated by Congress. And with the loss of tax revenues from those who lost their jobs in the downturn, combined with increased payment of unemployment benefits and a slowdown in consumer spending, it is little surprise that the deficit broke all records. Congress might even have to slash expenditure in sectors such as healthcare and defence.

Barack Obama has attributed the dismal US fiscal situation to the financial and economic problems he inherited. But things could be worse for the new US president - the UK budget deficit is getting on for 60% of GDP.

Source: Congressional Budget Office.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Has the cult of workplace wellbeing run its course?

Forget mindfulness apps and fresh fruit Fridays. If we really care about employee wellbeing, we...

Cybercriminals: A case study for decentralised organisations?

A study shows that stereotypes of organised criminals are wide of the mark.

Why your turnaround is failing

Be careful where you look for advice.

Crash course: How to find hidden talent

The best person for the role might be closer than you think.

What they don't tell you about flexible working

The realities of ditching the nine to five don't always live up to the hype....

The business case for compassion: Nando's, Cisco and Innocent Drinks

Consciously, systematically humane cultures reap enormous benefits, argues academic Amy Bradley.