USA Inc.: A Basic Summary of America’s Financial Statements, Created and Compiled by Mary Meeker, February 2011 – “This report looks at the federal government as if it were a business, with the goal of informing the debate about our nations financial situation and outlook. In it, we examine USA Inc.s income statement and balance sheet. We aim to interpret the underlying data and facts and illustrate patterns and trends in easy-to-understand ways. We analyze the drivers of federal revenue and the history of expense growth, and we examine basic scenarios for how America might move toward positive cash flow.”
“True, USA Inc. has many fundamental strengths. On an operating basis (excluding Medicare and Medicaid spending and one-time charges), the federal governments profit & loss statement is solid, with a 4% median net margin over the last 15 years. But cash flow is deep in the red (by almost $1.3 trillion last year, or -$11,000 per household), and USA Inc.s net worth is negative and deteriorating. That net worth figure includes the present value of unfunded entitlement liabilities but not hard-to-value assets such as natural resources, the power to tax or mint currency, or what Treasury calls heritage or stewardship assets like national parks. Nevertheless, the trends are clear, and critical warning signs are evident in nearly every data point we examine.”
Mary Meeker’s Definitive Guide To The American Public Debt Crisis [447 slides}
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