Watch the video at the following link httpwwwyoutubecomwatch

Watch the video at the following link:

http://www.youtube.com/watch?v=O_TjBNjc9Bo - copy and paste link into web browser

After watching the video, make your post to the forum addressing the following.

1.) What do you feel is the biggest \"deficit\" facing our economy? Why?
2.) Is there anything you can suggest that might help correct this deficit? Explain.

Solution

1. The biggest deficit facing the US econnomy is that the people of USA save less compared to their consumption. For the last 2 years the american households are spending more money than they earn. This is simple exerbating the situation and putting more at default risks.Savings are crucial for investment in the country and more research and development projects. They need to understand the assent of savings which will have long term impliction for future generation.

2. The increased savings, increasing tax rates and decresing waste of resources and reducing the debt to GDP ratio are some ways by which this problem can be reduced.