It doesn’t matter whether it is the current President Barak Obama or the Republican challenger Mitt Romney who will win the White House, next year going to be a tough year for the U.S. Main drag of the economy will be low growth, high unemployment, and the national debt.
The Gross Domestic Product (GDP) in the U.S. estimated to grow only 2.1 percent in 2013. Earlier estimates called for approximately 2.5 percent growth. The existing tax breaks are due to expire at the end of 2012 and $600 billion dollar tax hikes and mandatory spending cuts due to start in 2013. Some estimates that the impending “fiscal cliff” will cause the GDP to go down by about another four percentage points causing a negative GDP growth for 2013.
As of August 2012, the U.S. unemployment rate is 8.1 percent. Historically, the average unemployment rate from 1948 to 2012 is 5.79 percent with an all-time low of 2.5 percent in May 1953.
The ratio of national debt to GDP in the early 1980s was approximately 50 percent and today it is nearly 90 percent. The savings rate of approximately 10 percent in the past has gone down to about 4.2 percent.