The future of the U.S. fiscal worried
Finance August 31st, 2010
The future of the United States fiscal spending worrying for health care and assistance, and social networking program costs and interest on government loans increased, while tax revenues fall.
“We are in an area without a map. In the long term, the U.S. fiscal condition of scary,” said James Poterba, President of the National Bureau of Economic Research, in an interview with Bloomberg Radio, in Washington, today.
Poterba also taught economics at the Massachusetts Institute of Technology in Cambridge, Massachusetts. Conditions that caused the country’s voters make the economy as a major concern.
Meanwhile, the government scheduled to enter the state budget bill to Congress this week to be approved or modified. After discussing the budget, U.S. politicians will compete for power in the House and Senate in November.
Based on official government figures, Obama’s budget proposals for 2011 equivalent to 25.1% of the gross domestic product (GDP). Not much different from the budget the administration of President Ronald Reagan in the 1983 fiscal year reached U.S. $ 808 billion, or 23.5% of GDP.
Reagan’s proposed budget with the allocation of almost the same as Obama and also takes place during a recession. Meanwhile, in his message to Congress, Obama said solving the unemployment rate last year reached 10%, becomes an urgent priority.
