This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at where the U.S. is frugal. Mike, our country doesn’t have a reputation for being frugal. The national debt has more than doubled in the last decade. The unsustainable debt accumulated by U.S. households was a big factor behind the Great Recession. But is there a sector of the economy where the U.S. actually looks miserly?
- Yes, with corporate debt
- Average corporate debt as a % of a country’s GDP is 123%; for US it is 73%
- US is also well below most European countries, Canada, and Japan and China
- Mexico is lower than the US
- Also, whereas most of these countries have seen big jumps in the corporate debt as a % of GDP in last decade, US’s has had virtually no change
- So, we can be frugal
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.