IDEAS home Printed from https://ideas.repec.org/a/iem/journl/v3y2011i4id2822000008752043.html
   My bibliography  Save this article

Strategii de reducere a deficitelor şi datoriei publice a Statelor Unite ale Americii adoptate de Administraţia Obama

Author

Listed:
  • Rodica Velciu

Abstract

At the beginning of the second decade of the 21st century, the sovereign debts of one of the largest economies of the world were “blown up†because of the ageing population and the costs determined by the financial crisis. According to an analysis by Standard & Poor’s rating agency, if governments maintain current fiscal policies, for 49 states representing 2/3 of the world population, the average debt as percentage of GDP will reach 245% by 2050. "The pressure of increasing expenses will determine profound changes in the economical perspectives of these countries. The erosion will start in 2015, when the quota of many states with high rating will start being under pressure", declare the Agency’s analysis. In mid April 2011, Barack Obama announced the elaboration of an ambitious plan for the reduction of the federal budget deficit, in total amount of USD 4,000 billion, over a period of 12 years. Democrat and Republican leaders of the Congress reached an agreement in respect to the raise of the debt limits, after months of intense closed-doors negotiations and only two days before the due date set by the Ministry of Finance. In order to avoid payment default, democrats and republicans reached an agreement to increase the leveraging to USD 14,300 billion, by USD 2,100 billion. Moreover, this agreement establishes a reduction of governmental expenses for the next 10 years with up to USD 3,000 billion and enough loans in order to avoid another increase in the leveraging limits in 2013. In turn, FED announced they will maintain stimulating policies for another two years, although in June the economic stimulation program should have ended. The monetary policy interest rate is at the lowest level in the history of the Central Bank, between 0% and 0.25% since 2008. At the beginning of September, President Barack Obama presented a new plan of economic revival and labor market support for a period of six years, rounded at USD 447 billion, in the attempt to avoid a new recession and in order to rebut a layoff that tends to stay at over 9%. Republicans fought some of the actions of the new plan, and also the solution of its financing, ensured 50% by increasing contributions for the rich contributors and eliminating fiscal facilities for the big corporations.

Suggested Citation

  • Rodica Velciu, 2011. "Strategii de reducere a deficitelor ÅŸi datoriei publice a Statelor Unite ale Americii adoptate de AdministraÅ£ia Obama," Revista de Economie Mondiala / The Journal of Global Economics, Institute for World Economy, Romanian Academy, vol. 3(4), December.
  • Handle: RePEc:iem:journl:v:3:y:2011:i:4:id:2822000008752043
    as

    Download full text from publisher

    File URL: http://www.iem.ro/rem/index.php/REM/article/view/45/31
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    deficite; datorie publica; datorii suverane; SUA; Obama;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iem:journl:v:3:y:2011:i:4:id:2822000008752043. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ionela Baltatescu (email available below). General contact details of provider: https://edirc.repec.org/data/imacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.