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| In conversations with Marketplace Morning Report hosts Bill Radke and Steve Chiotakis, Stephan Richter explores intriguing angles on the global economy. |
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Major Budget Adjustment If the eurozone's problems have taught us anything, it's that the world's governments face huge debts. We wonder: Which of the following major economies will have to adjust the most to get back to a sustainable debt level? A. Italy The correct answer is D. The U.S. debt-to-GDP ratio currently is 92.6% — and rising. In order to ensure that the country's debt level remains sustainable, the United States needs a consolidation of 12% between now and 2020. By comparison, Greece requires an adjustment of 16.8% of GDP, much of it coming in 2010. The only large economy in need of an even larger consolidation than the United States is Japan, where a cutback of 13.1% is required. By comparison, France will achieve the same target with a consolidation totaling around 8.3% of GDP — and Germany around 4.0%. The lingering budgetary
effects of the current crisis aside, most of these countries will also
face additional pressures from aging-related spending.
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The Marketplace Globalist Quiz is produced by Marketplace and The Globalist — and researched by The Globalist's Mike McCarthy. The text of this Marketplace Globalist Quiz may not be reproduced in any form without the express written permission of The Globalist. Copyright © 2010 The Globalist. |
