This past week the now hydra-like Greek debt crisis reared yet another one of its re-growing heads. Anti-austerity protests returned to Athens as Greek ministers attempted to acquiesce to the demands of European Union leaders who thought that the problem had already been dealt with. The continuation of the Greek recession, now entering historic periods of length and severity at five years and a 16 percent decrease from pre-recession GDP, should not be seen as a surprise.
The United States’ national deficit exceeds $13 trillion—over $42,000 per US resident. With U.S. gross domestic product (GDP) at $14 trillion in 2009, our debt-to-GDP ratio is 93 percent and growing. Japan enjoyed 90 percent debt-to-GDP levels in 1995. Following two decades of stagnant growth, Japan now risks exceeding 190 percent. 15 years from now, America’s Debt-to-GDP ratio may double [...]
In the first half of 2010, investor confidence in several European nations plummeted. For years these nations had experienced debt accumulation and increasing budget deficits. Understanding the urgency of the crisis, virtually all Western European countries—even financially secure ones—implemented austerity programs and made efforts to decrease structural deficits. Despite the transnational support for austerity, the policy has been met with [...]
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