Due to an increasing U.S. Federal government deficit many groups now argue for the institution of a national value-added tax (VAT) to increase government revenue. James M. Bickley of the Congressional Research Service examines the plausibility of enacting such a plan.
In the Washington Post, Fareed Zakaria criticises the latest tax compromise for lacking a balanced, long-term solution to skyrocketing deficits, deriding the current trend towards 'mañana economics', and compares it to China's investment in sustainable growth.
In this report, the Pew Research Center for the People and the Press explains that there is public consensus on federal budget issues in principle, but resistance along partisan lines when plans are put into practice.
Published in Spiegel, this interview with German Finance Minister Schäuble provides insight into the relationship between Minister Schäuble and his American counterpart, Secretary Geithner, as well as the German position on the latest financial developments like the recent move towards quantitative easing.
Newly developed long historical time series on public debt, along with modern data on external debts, allow a deeper analysis of the cycles underlying serial debt and banking crises. The evidence confirms a strong link between banking crises and sovereign default across the economic history of great many countries, advanced and emerging alike
Gerald F. Seib views the federal budget deficit as a potential national security threat, emphasizing that budget deficits make America vulnerable to foreign pressures, allow Chinese power to grow as a result, put long-term national-security budgets at risk, and underme the American model before the rest of the world.
The U.S. debt-to-GDP ratio has nearly grown to the Group of 7 (G7) average, a dramatic increase from 2000 when it was lower than most other G7 countries, according to a new progress report and scorecard from the Council on Foreign Relations Renewing America initiative. At its current rate, the U.S. debt-to-GDP ratio will be higher than all G7 countries except Japan by 2040.
The new House budget sets a deadline of October 1 to “cut waste, eliminate redundancies and end the abuse or misuse of taxpayer dollars,” and it specifically targets the Department of Defense (DOD) for spending “part of their budget studying climate change.” Varun Sivaram highlights how the military’s broad portfolio of climate change adaptation efforts should not be considered redundant or wasteful because it bolsters American national security interests.
Thanks to the spending bill that House and Senate leaders have negotiated, the federal government will avoid a shutdown. And that's great. Unfortunately, though, that’s the highest praise that can be attached to the deal.
A. Michael Spence argues that the eurozone has an opportunity to jumpstart economic recovery by relaxing fiscal constraints on the condition that member states use the reprieve to initiate public sector investment and structural reforms.
he US racked up debt faster than any other G7 country during the Great Recession, so that its debt burden is now as bad as the average European country. If current projections hold, by 2040 the US will have the worst debt burden of any G7 country save for Japan, reaching levels not seen since World War II.
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The authors argue that the United States has responded inadequately to the rise of Chinese power and recommend placing less strategic emphasis on the goal of integrating China into the international system and more on balancing China's rise.
Campbell evaluates the implications of the Boko Haram insurgency and recommends that the United States support Nigerian efforts to address the drivers of Boko Haram, such as poverty and corruption, and to foster stronger ties with Nigerian civil society.
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