Deficits
in sentence
2171 examples of Deficits in a sentence
While Germany has an unallocated budget surplus of €6 billion ($6.8 billion), other EU countries are running
deficits.
Peripheral eurozone countries ran large current-account deficits, which subsidized German growth.
More recently, polls showed widespread belief in decline after the Soviet Union launched Sputnik in 1957, then again during the Nixon-era economic shocks in the 1970’s, and after Ronald Reagan’s budget
deficits
in the 1980’s.
High unit labor costs and unemployment rates are responsible, in turn, for reducing the trend rate of economic growth, mainly owing to under-utilized labor, while the combination of lackluster growth and an ever-mounting welfare burden has resulted in chronic budget
deficits.
Many countries in Latin America, such as Mexico and Bolivia, undertook such policies in a fiscally prudent manner, ensuring that government
deficits
would not lead to high debt and macroeconomic instability.
Moreover, China runs large
deficits
against Japan and Southeast Asian economies, even as it runs a large surplus against the US.
Over the period for which modern statistics are readily available, Democrats have outperformed Republicans by almost every traditional measure of economic performance (per capita GDP growth, unemployment, inflation, budget deficits).
First, governments must consolidate their fiscal positions to reduce current-account
deficits
and lower external debt.
Doing enough would require reducing annual budget
deficits
by 0.5% of GDP every year during the coming decade just to improve the sustainability of government debt on average.
As government
deficits
and public debt increase in many developed and emerging economies, financial markets will most likely demand higher risk premia, owing to heightened fears of default and inflation down the road.
But chances are that it will not really help, because it trying to reduce
deficits
in that manner will severely undermine economic performance.
In other words, economic growth will turn out to be structurally much lower than is the figures used now for estimating
deficits
and debt.
Welcome to the BAD (Big Annual Deficits) decade of public debt.
It helps to finance other countries’ trade
deficits
and domestic investment (many of its beneficiaries have large budget
deficits
that decrease national saving below domestic investment).
After all, trade
deficits
mean job losses.
In 2011, the US had trade
deficits
with 98 countries.
The other 97
deficits
did not magically appear.
Lacking in savings and wanting to grow, the US runs massive current-account and multilateral trade
deficits
in order to import other countries’ surplus savings.
Trade
deficits
– with China or any other country – are part of the price that America pays for its unbridled profligacy.
Unless and until the US faces up to its chronic aversion to saving – namely, by reducing massive federal budget
deficits
and encouraging the rebuilding of severely depleted household saving – multilateral trade
deficits
will persist.
This requires ensuring the credibility and transparency of the accounting rules that define budget
deficits
and public debt, with closer monitoring also focusing on the development of asset bubbles, which cause deep recessions – and thus sharp increases in budget
deficits
– when they burst.
This is a pittance compared to the eurozone’s debts and deficits, and would fall far short of funding Europe’s permanent rescue facility, the European Stability Mechanism, which is supposed to be capitalized to the tune of €500 billion.
In addition, in many countries, including France, Ireland, and Portugal, governments have raided pension funds in order to finance their budget
deficits.
Direct or indirect monetary financing of budget
deficits
used to rank among the gravest sins that a central bank could commit.
Brazil, too, is suffering from slow growth, not to mention stubborn inflation and mounting
deficits.
That dynamic unmasks the Achilles’ heel of Trumponomics: a blatant protectionist bias that collides head-on with America’s inescapable reliance on foreign saving and trade
deficits
to sustain economic growth.
This is important because it explains the pernicious trade
deficits
that Trump continues to rail against.
And the only way to attract that foreign capital is by running massive current-account and trade
deficits.
It fixates on country-specific sources of the trade deficit, like China and Mexico, but misses the fundamental point that these bilateral
deficits
are symptoms of America’s far deeper saving problem.
The US had trade
deficits
with 101 countries in 2015 – a multilateral problem stemming from a saving shortfall that cannot be effectively addressed through country-specific “remedies.”
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