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Study: US Finances Among Worst in Developed World

Thursday, 24 Mar 2011 12:27 PM

The United States is one of the worst of the developed economies when it comes to financial stability and should expect to stay there until it tackles its debt problems, according to the Comeback America Initiative, a nonprofit organization promoting fiscal stability.

The organization's Sovereign Fiscal Responsibility Index ranks the U.S. at 28th among 34 countries when it comes to being able to meet financial challenges.

"We think it is important for the American people to understand where the United States is as compared to other countries with regard to fiscal responsibility and sustainability," David Walker, head of the organization and former U.S. comptroller general, tells CNBC.

"Americans are used to rankings and they're used to ranking very high, but frankly in this area we rank very low."

The report did find a silver lining for Americans.

"Here's the good news: Some of the top countries had their own fiscal challenges, made reforms and now rank highly," Walker says.

The top five countries were Australia, New Zealand, Estonia, Sweden, China and Luxembourg.

The U.S. should run a $1.5 trillion fiscal deficit this budget year ending Sept. 30, according to the nonpartisan Congressional Budget Office, the Associated Press reports.

The full-year deficit would exceed 2009's record deficit of $1.41 trillion. And it would mark the third straight year of $1 trillion-plus deficits.

A group of past heads of the Council of Economic Advisers have written in a letter published by Politico calling for leaders to take public spending seriously.

"We find ourselves in remarkable unanimity about the long-run federal budget deficit: It is a severe threat that calls for serious and prompt attention," the authors write in the letter addressing Congress and President Barack Obama.

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The United States is one of the worst of the developed economies when it comes to financial stability and should expect to stay there until it tackles its debt problems, according to the Comeback America Initiative, a nonprofit organization promoting fiscal stability. The...
us,economy,Finances,Among,Worst,Developed,World
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2011-27-24
Thursday, 24 Mar 2011 12:27 PM
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