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Deficits in sentence

2171 examples of Deficits in a sentence

The Euro-American Debt DilemmaPALO ALTO – Wealthy Europe and America, crown jewels of mixed capitalist democracies, are drowning in deficits and debt, owing to bloated welfare states that are now in place (Europe) or in the making (the United States).
As Europe struggles to prevent financial contagion and America struggles to reduce its record deficits, their dangerous debt levels threaten future living standards and strain domestic and international political institutions.
Following the last deep American recession, in 1981-1982, when the unemployment rate peaked at a higher level than in the recent recession, Democrats blasted President Ronald Reagan for deficits of 6% of GDP.
Republicans now berate President Barack Obama for deficits of 10% of GDP.
Interest rates on US government debt remain low, so this threat is prospective, but future deficits will be far higher than government projections when rates normalize.
Fiscal policy has been effectively disabled since 2010, as the slump saddled governments with unprecedented postwar deficits and steeply rising debt-to-GDP ratios.
Europe is little better, paralyzed as it is by internal divisions and budget deficits.
In the 1980’s, Scandinavian countries stood for chronic budget deficits, high inflation, and repeated devaluations.
First, all were caused by a profound crisis of the social-welfare state: falling output, rising unemployment, large budget deficits, inflation, and devaluation.
The General and his monetary guru, Jacques Rueff, argued that the US used the dollar's status as the major reserve currency of the Bretton Woods fixed exchange-rate regime in order to run deficits and pay for its overseas military adventurism (at that time in Vietnam).
Meanwhile, Europeans (especially the French) complain about the big US deficits, and de Gaulle's argument that the rest of the world is paying for America's wars is in fashion again.
The call for “outright monetary financing” involves raising government deficits still further and financing them through a permanent increase in base money issued by central banks.
The first AHDR, published in 2002, identified three major “development deficits” holding the region back: knowledge, women’s empowerment, and freedom.
Economic predominance shifted only when the UK ran large current-account deficits during World Wars I and II – the country had to borrow heavily in order to finance its war effort, and imports were significantly higher than exports.
More recently, however, it has been the Americans’ turn consistently to run large current-account deficits, buying more from the rest of the world than they earn by selling goods and services abroad.
The US, benefiting from the “exorbitant privilege” of issuing debt denominated in its own currency, has run current-account deficits for more than 30 years.
American democracy’s emphasis on short time horizons is costly, with tax cuts and increased welfare benefits giving rise to chronic fiscal deficits, with future generations forced to foot the bill for years of excessive consumption.
Large tax cuts and large expenditure increases inevitably lead to large deficits.
Higher interest rates will undercut construction jobs and increase the value of the dollar, leading to larger trade deficits and fewer manufacturing jobs – just the opposite of what Trump promised.
Third, countries like Thailand that were running large external deficits, heightening their dependence on foreign finance, are now running surpluses.
Concern about budget deficits has become a burning political issue in the United States; helped to persuade the United Kingdom to enact stringent cuts, despite a weak economy; and is the proximate cause of the Greek sovereign-debt crisis, which has grown to engulf the entire eurozone.
For eight years, it never stopped forecasting that the budget would return to surplus by 2011, even though virtually every independent forecast showed that deficits would continue into the new decade unabated.
Unrealistic macroeconomic assumptions, farfetched theories about tax cuts, and legislation that deliberately misrepresented policy plans all worked as intended, yielding overly optimistic forecasts, which in turn help to explain excessive budget deficits.
The most important and well-known example is the eurozone’s fiscal rules, which supposedly limit candidate countries’ budget deficits to 3% of GDP, and their public debt to 60% of GDP.
Instead, for four years they pretended that budget deficits were of little concern.
Only after being re-elected did they begin to explain that large budget deficits, caused mainly by lower tax revenues, would require sharp cuts in social security, health care spending, and other areas.
With the Republican-controlled Congress seeking to make the tax cuts for the rich permanent, the world is beginning to realize that America’s budget deficits are now entrenched, with no end in sight.
Because America’s economy is so large, and the dollar so central to global finance, chronic US budget deficits mean huge global repercussions.
This response to homegrown problems plays well with voters, but it is ridiculous and ignorant, especially since the US has been depending on China to help finance the fiscal deficits.
Countries with large current-account deficits and/or large fiscal deficits and with large short-term foreign currency liabilities have been the most fragile.
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