Anyone looking for good news is unlikely to be enamoured by a study published today by the Brookings Institution, a respected think tank based in Washington DC, on America’s economic and fiscal crisis.
According to the study by William G Gale, the organisations director of economic studies, and Alan J Auerbach, of the University of California, Berkeley:
“The budget outlook at every horizon is troubling: the fiscal-year 2009 budget is enormous; the ten-year projection is clearly unsustainable; and the long-term outlook is dire and increasingly urgent.“
Nor are the fiscal problems restricted to the federal government. The individual states are also facing similar problems while European countries, including Britain, look like they are on a comparable trajectory.