It's fashionable these days to compare America to Greece, Portugal, Ireland and other debt-laden countries. Thanks to the combined efforts of Stanford and the Comeback America Initiative, there's now a quantitative analysis of America's ranking.
The bad news is America came in 28th out of the 34 nations ranked in the Sovereign Fiscal Responsibility Index, aka the "fiscal fitness test." (Go here for the full report.)
"We are not in a very good neighborhood," says David Walker, CEO of the Comeback America Initiative and former U.S. Comptroller General. "We need to move on up."
Citing our "deteriorating financial condition and the deficits that lie ahead," there's no way American can "grow itself out" of its fiscal predicament, Walker says. However, he believes improving our 'fiscal fitness' is doable, if America takes the following steps:
- Impose tough budget controls.
- Reform the social insurance contract to make it "solvent, sustainable and secure."
- Cut defense and other spending