The face of the world has been changed. Six decades ago accounted from year 1920, United States of America (USA) is a big economy which has a capability to finance the economic development of the other countries when the budget of income - spending and the balance of payment of USA is still in surplus. Even though there is a sharp equality between the decade of 1920 and 1980 but the circumstance in the 1980 decade is worse than six decades ago.
A big attention in the form of more erosion in the USA's economy appear in the 1990 decade. This situation have made the power of USA's competitiveness fall down because of budget deficit and tricked in the debt trap which is called by USA's economist as the twin deficit theory.
The twin deficit of USA is a deficit in the budget of income - spending which causes the deficit of balance of payment on current account will have a bad influence to the USA's economy itself and of course to the world economy. |