Graph of the Day for May 12, 2010

"The term PIIGS has been coined to refer collectively to Portugal, Italy, Ireland, Greece, and Spain... If PIIGS refers to nations that have overspent and are now overleveraging to pay for their deficits, the United States is feeding from the same trough."  Fortune.

"Budget deficits and debt are the real problems; they stem from all the welfare benefits (unemployment insurance, old-age assistance, health insurance) provided by modern governments."  Robert Samuelson, Washington Post, May 10, 2010.

"What we're seeing is sort of the failure of European socialism and social welfare states... The markets are questioning whether or not governments are going to be able to live up to all the promises and all the debt that they have racked up."  Rep. Paul Ryan (R-WI), via HotAir.

Source:  CBO.

Hoven's Index for May 12, 2010

Government deficits as percentages of GDP, in 2009:

Ireland:  14.3% (highest in Europe Union)

Greece:  13.6%

UK:  11.5%

Spain:  11.2%

US:  9.9%

Portugal:  9.4%

Italy:  5.3%

Source:  Eurostat and the CBO.

Graph of the Day Archive.