federal deficits, gross debt, military spending, infrastructure investment, income inequality and now endemic joblessness:
- Seen over a ten-year span, federal revenue has largely stayed constant, rising from $2.02 trillion in 2001 to $2.17 trillion in FY 2011. Expenditures, meanwhile, more than doubled from $1.85 trillion to $3.82 trillion producing a deficit this year of $1.65 trillion.
- Over the same period, gross U.S. debt has ballooned to over $14 trillion (roughly 100% of GDP) with net debt standing today at $9 trillion (of which 50% is held by non-U.S. entities).
- Defense expenditure over the same period has risen from approximately $300 billion in the year prior to 9/11 to $700 billion in FY 2011, and the figure is hundreds of billions higher if military spending outside the Defense Department is included. The total costs (estimated and very likely low-balled) of the Wars of 9/11 in Afghanistan and Iraq now stands at some $1.5 trillion, financed of course entirely by deficit spending. The result is that the U.S. now spends more on its defense budget than all other countries combined.
- The U.S., which once led the world in infrastructure development, now spends just 2.0% of GDP in such investments, as opposed to 5% in the EU and 9% in China. Of the 30 largest infrastructure projects globally, half are in developing economies and just five are in the U.S. A single Chinese project (the $150 billion North-South water diversion plan) involves more than double in total investment ($65 billion) of all five current U.S. projects.
- Looking at the U.S. gini coefficient, the most commonly used measure of inequality, no country in the developed world today has a greater gap between rich and poor. U.S. inequality is currently at levels not seen since the first decade of the 20th century – and greater even than in 1929.
- Finally, last week’s payroll report for July showed that nearly fourteen million Americans are now out of work, and more than six million of them have been jobless for more than six months. For more than two years, the unemployment rate has been close to or above nine per cent – and if you include those people who’ve given up looking for work it’s nearly double that.
If this is what global dominance looks like, who needs it?
