How do you explain that the United States is still at the to

How do you explain that the United States is still at the top of the list given its record deficits and weak financial system?

Solution

Economics is implemented by strong political will. No economic measures are possible if political system is unwilling to execute the changes.

Record deficits (assuming budget deficit) is very likely because the government cannot increase tax revenue from a still-recovering economy. Higher tax will lower disposable income of consumers, which will lower consumption demand and dampen the economy (even higher corporate tax will act as disincentive to invest). But due to the economic crisis, government spending, especially on welfare spending, has sky-rocketed. Therefore the deficit is at a record level.

Strengthening of financial system arises from regulatory austerity and stringent measures to be taken in order to implement stricter regulations and rules, to strengthen the financial system and remove the loop-holes. As to why this hasn\'t still happened after subprime crisis, economists tend to blame the political unwillingless as to force-implement austerity on financial firms.