October 10, 2020 - BY Admin

BUDGET DEFICIT AND DEBT-TO-GDP RATIO COMPARISON GHANA-USA

I SAID IT ONCE BEFORE, AND I SAY IT ONCE AGAIN: OF COURSE THERE ARE PROBLEMS WITH THE COMPARISON OF THE ECONOMY IN GHANA WITH THAT OF THE UNITED STATES OF AMERICA. YOU CAN'T JUST COMPARE THE BIGGEST ECONOMY IN THE WORLD WITH THAT OF A DEVELOPING COUNTRY. BUT ON THE OTHER SIDE, SOME FIGURES ARE REALLY INTERESTING TO NOTE. WHEREAS HERE PEOPLE  - FROM THE OPPOSITION AS WELL AS FROM THE GOVERNMENY - ARE WORRIED ABOUT A BUDGET DEFICIT OF AROUND 7 PERCENT [AND PETHAPS THEY ARE RIGHT TO WORRY ABOUT IT], THE BUDGET DEFICIT IN THE USA IS NOW AT AROUND 15 PERCENT. AND AS WE ARE WORRIED HERE ABOUT A DEBT-TO-GDP RATIO OF AFOUND 68 PERCENT. THE UNITED STATES OF AMERICA HAS JUST ENTERED THE PHASE OF HAVING MORE DEBTS THAN PRODUCTS AND SERVICES GENERATED IN THE COUNTRY - THE GDP. THE DEBT-TO-GDP RATIO IS OVER 100 PERCENT.
AS IT IS SURELY JUSTIFIED TO BE CONCERNED ABOUT THE ECONOMICAL SITUATION IN THE COUNTRY, WE MUST ALSO REALISE THAT WE ARE NOT THE ONLY COUNTRY IN THE WORLD WITH ECONOMICAL PROBLEMS. NEARLY EVERY COUNTRY IN THE WORLD SUFFERS FROM THE INFLUENCE OF THE CORONA VIRUS PANDEMIC. IT WILL SURELY TAKE SOME TIME TO OVERCOME THE VIRUS, AND IT WILL SURELY TAKE SOME MORE TIME TO GET BACK TO A PRE-PANDEMIC ECONOMICAL SITUATION . ALTHOUGH IT IS SURELY MORE DIFFICULT FOR A DEVELOPING COUNTRY TO GET BACK TO NORMALITY, IT IS SOMEWHAT COMFORTING WHAT IS WRITTEN ABOUT THE USA ECONOMY IN THE 1970s AND THE 1980s, AND WHAT IS ALSO VALID FOR THEIR SITUATION TODAY: "The stock market frenzy neither enhanced American competitiveness nor
trimmed the trade deficits, which had been persistent since the early
1970s." [RON CHERNOW, THE HOUSE OF MORGAN, P. 877]