Background
According to recent estimates, the US could face a severe fiscal crisis within a few years if the tax revenue levels and expenditure continues in the same way. There was recently a debate in Washington on measures to be taken to prevent a shutdown of the government.
The debt levels have been estimated at $14 trillion and it is up to President Barack Obama, Senate Majority leader Harry Reid and House Speaker John Boehner to come to some conclusion of how this ultimate financial meltdown can be prevented.
Statistical Analysis
This has become a raging national topic and much research is being done on this topic. Stanford University combined with David Walker, the US Comptroller General to develop an index which designates levels of fiscal responsibilities. The highlight of this study is the position of the US which ranks 28th in terms of fiscal responsibility.
Lack of Focus
The recent debate did not consider the big picture. The main argument between the Republicans and Democrats centered on domestic non-security discretionary spending cuts which accounts for only about 12% of the federal budget, bypassing the big spenders like defense, social security, and Medicare.
The prognosis is very grave indeed with the Us national debt exceeding 90% of the Gross Domestic Product.
