Thursday, October 21, 2010

Updated Picture - U.S. Deficits vs U.K. Deficits

U.K. Budget Deficits as Proposed by Conservative Government

Projected U.S. Budget Deficits Under Obama

This is an update to my earlier post about the British government making the tough choices to pull back from the brink of de facto bankruptcy. Note how the differences in budget difficulties are not that great at the macro level.
The UK deficit is about 10 per cent of 2010-11 GDP. The US deficit was $1,294bn, or 8.9 per cent of GDP, in the 2010 fiscal year.
But the differences in response could not be different. Obama and the Democrats would increase the deficits if they could get away with it. More reason to kick them to the curb in November.