The Economy in Crisis

1. The Economy in Crisis Eco 352 Fall 2012

2. Some Economic Indicators • NYS unemployment • December 07: 4.7%, August 12: 9.1% • U.S. unemployment • December 07: 5.0%, August 12: 8.1% • U.S. inflation • December 07: 4.1%, November 11: 1.7% Source: Bureau of Labor Statistics

12. Measures of Recession Depth and Duration NOTE: Depth measures the average percent change from peak to trough for real GDP and real GDI and the average percentage-point change from trough to peak for the unemployment rate. Changes in real GDP and real GDI during the Great Depression are based on annual data. SOURCE: Kevin L. Kliesen’s calculations based on quarterly data. Economic Synopses, Federal Reserve Bank of St. Louis, March 23, 2009.

27. U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 20 April 2009 is: $ 1 1 , 197, 726, 249, 988 The estimated population of the United States is 306,038,582, so each citizen's share of this debt is $36,589.26 The National Debt has continued to increase an average of $3.84 billion per day since September 28, 2007! Source: U.S. National Debt Clock, http://www.brillig.com/debt_clock/

30. U.S. International Indebtedness (Net U.S. asset position as a % of GDP)Source: Calculations by Eshragh Motahar based on data from the Fed and the BEA)

38. Universal HealthCare • $104 billion per year could implement the Obama healthcare plan • The above is equal to 15% of U.S.’s 2008 military budget (Source: Paul Krugman, “Kealthcare Now,” The Newy York Times, 1/30/2009, citing research from The Commonwealth Fund.)

39. US military spending accounts for 48 percent, or almost half, of the world’s total military spending • US military spending is more than the next 46 highest spending countries in the world combined • US military spending is 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran. • US military spending is almost 55 times the spending on the six “rogue” states (Cuba, Iran, Libya, North Korea, Sudan and Syria) whose spending amounts to around $13 billion, maximum. (Tabulated data does not include four of the six, as the data only lists nations that have spent over 1 billion in the year, so their budget is assumed to be $1 billion each) • US spending is more than the combined spending of the next 45 countries. • The United States and its strongest allies (the NATO countries, Japan, South Korea and Australia) spend $1.1 trillion on their militaries combined, representing 72 percent of the world’s total. • The six potential “enemies,” Russia, and China together account for about $205 billion or 29% of the US military budget. Source: http://www.globalissues.org/article/75/world-military-spending#USMilitarySpending

40. U.S. population: 4% of World populationU.S. Military Spending vs. the Rest of the World

44. More Economic Indicators • Median household income, adjusted for inflation, lower in 2007 than in 2000