Gross National Product Defined
Gross Domestic Product refers to the market value of all final goods and services produced within a country in a given period. When comparing Gross Domestic Product per capita around the world, the Gross Domestic Product can indicate the standard of living of all of the citizens of that country.
The United States Leads World in Financial Statistics
The United States in 2010 led the rest of the world in Gross Domestic Product at almost 1.5 times the size of its closest competitor, the People’s Republic of China. Considering Per capita Gross Domestic Product figures in 2010, the United States is slightly lower than the leader in that group, Hong Kong.
Not surprisingly, the United States leads in many negative statistics involving finances as well, like filing personal bankruptcy. There is not much statistical evidence to track all the countries around the world when it comes to filing bankruptcy. Many countries do not have bankruptcy laws in place, and the ones that do are not always reliable in reporting statistics to government entities let alone world institutions who track such. Nevertheless, because the United States does keep bankruptcy records, it leads the world in filing bankruptcy.
The Financial Health and Wellness Within the United States
The United States is an open capitalistic system where bankruptcy statistics and the Gross Domestic Product are important pieces of doing business. Neither of these are necessarily a sign of the financial health and individual wellness within the country.
Recent financial news indicate more than 50% of the state governments in the United States are in financial trouble and bordering on bankruptcy. The Federal Government is not allowed to file bankruptcy. Municipalities across the United States, which are allowed to file for bankruptcy under federal bankruptcy law, have been filing bankruptcy these past few years in record numbers.
Likewise, despite Congress passing of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 which was enacted to make it harder for filing bankruptcy, individuals have been filing bankruptcy in record numbers the same few years.
No Solution in Sight
Despite the United States still currently having one of the highest standards of living in the world, most of the wealth within the United States has slowly been transferred to a small minority of the financially elite. More than 80% of the Citizens of the United States of America’s owns less than 20% of its wealth. 90% of the wage earners make less than 60% of the available income. That means that 10% of the financially elite make 40% of all the available income.
The United States is seventh in a list of nations with the richest people in the world. It is considered to be home to as many billionaires as there are in the rest of the world.
The United States may lead the world in Gross Domestic product, but the disparity between the financially elite and the rest of America’s working citizens might be one reason there is so many filing bankruptcy. There does not seem to be any solution to the problem in sight.
- Bankruptcy Law Makes Filing More Costly but Is It Fair? (betterbankruptcy.com)
- Texas, the Largest State with Lowest Per Capita Bankruptcies (betterbankruptcy.com)
- Eleven Common Bankruptcy Definitions You May Want to Know (betterbankruptcy.com)
- Bankruptcy Basics: Six Basic Types of Bankruptcies (betterbankruptcy.com)
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