Greece’s Fiscal Crisis – and the U.S. [video brief]

Craig Huey Economics Leave a Comment

Greece is currently in a fiscal crisis.

How did it get here?

Greece’s debt was about 75% of the country’s GDP levels 25 years ago.

In 2012, the debt levels approached 156% of the country’s GDP. Now, in 2014, Greek debt levels are 177% of national GDP, and the country has been considering defaulting on its loans.

While Greece has just been given a bailout by the EU, it is still uncertain how this deal will work out. Watch about it here. And watch about the nation’s division over it here.

Frighteningly, Greece’s trajectory towards near-bankruptcy is a likely path for the U.S…

Our current debt levels are equal to what Greece’s were 25 years ago. And the Congressional Budget Office’s “alternative scenario” projects that, in 25 years, our debt levels will reach 156% of our GDP – the same levels Greece had in 2012.

Unfortunately, the Congressional Budget Office’s “alternative scenario” is the most likely one – it is what will happen if Congress leaves the budget as it is.

America is approaching a “Greek-style meltdown.”

We must cut back on spending.

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