Connect with us

Markets

By This Measure, the U.S. has the 2nd Highest National Debt

Published

on

By This Measure, the U.S. has the 2nd Highest National Debt

By This Measure, the U.S. has the 2nd Highest National Debt

USA is #7 in debt to gdp, but #2 in debt to revenue

In absolute terms, the United States is the most indebted country in the world, accounting for 29% of the world’s $60 trillion of sovereign debt.

However, this is not really a fair comparison in some ways because it does not account for the relative wealth of the country in contrast to poorer economies. That’s why it is standard practice to measure sovereign debt in a ratio comparing it directly to the economic productivity, measured by gross domestic product (GDP).

Using this ratio in comparison with other OECD countries, the United States is a modest 7th place (out of 34) in the rankings in terms of its debt load. However, as Jeffrey Dorfman writes in Forbes, comparing debt and GDP has some considerable problems.

The major issue is that economic production cannot be converted directly to dollars that a government can spend. If this were true, a government could claim everyone’s income as taxes and use it to pay down the debt. However, in reality, a 100% tax rate would make everyone would quit their jobs or leave the country. That’s why it makes more sense to compare a government’s debt to the actual tax revenue collected, as this creates a clearer picture of the country’s debt burden and the capacity to pay.

We pulled the latest data from the OECD to compare three ways of measuring the amount of debt that a country has accumulated. The first is the standard Debt to GDP ratio. In addition, we looked at Debt to Revenue (this includes all federal, state, and municipal tax revenues) as well as Debt to Central Government Revenue (this excludes state and municipal tax revenue). The data from the OECD database is from 2013.

When tabulated using all three measures, the world debt picture changes significantly. The United States is 7th in Debt to GDP with a ratio of 103%, but it jumps to 4th place (406%) in terms of Debt to Revenue, and then 2nd place (979%) in terms of Debt to Central Government Revenue. In other words, when it comes to the actual capacity to pay down this debt, the United States is the second most indebted country in the world. Even if the federal government theoretically used all tax revenue to pay down debt, it would take 10 years (not including any interest).

Of course, the United States also has the world’s reserve currency for now, which gives it more flexibility with its debt and monetary policy. This is less true for a country like Greece, where the currency cannot be devalued at all so long as the country is a part of the EU.

How do other major countries do when comparing the regular measure to the new one using revenue? Canada jumps five spots to 5th place with 695%, and Germany jumps nine spots to 6th place. The UK drops five spots down to 16th overall with 351%. Australia rises two spots from 30th to 28th.

Click for Comments

Retail

The World’s Top Retail Companies, by Domestic Revenue

As price pressures and e-commerce reshape shopping behaviors, we show the top retail companies by domestic revenue around the world.

Published

on

This circle graphic shows the world's top retail companies by domestic revenue.

The World’s Top Retail Companies, by Domestic Revenue

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The retail sector plays a vital role in powering economies, contributing $5.3 trillion annually to America’s GDP alone.

Moreover, the industry is America’s biggest private-sector employer, responsible for one of every four jobs, or 55 million employees. Yet in today’s challenging consumer environment, retailers are facing higher e-commerce penetration and inflationary pressures—across an industry notoriously known for razor-thin margins.

This graphic shows the world’s top retail companies by domestic revenue, based on data from the National Retail Federation.

Methodology

To be included in the rankings, companies must engage in a goods-for-consumer resale business accessible to the public and have direct selling operations in a minimum of three countries.

The rankings include both publicly and private companies, and are based on the most recent 52-week period analyzed by the National Retail Federation between January and March 2024. All revenue figures were converted to U.S. dollars.

Ranked: The Top 10 Global Retailers by Domestic Sales

Here are the leading retailers worldwide based on domestic sales as of 2023:

RankingRetailerDomestic Retail Revenue
(USD)
Share of Total Retail RevenueHeadquarters
1Walmart$532.3B85%🇺🇸 U.S.
2Amazon.com$250.0B70%🇺🇸 U.S.
3Costco$175.4B75%🇺🇸 U.S.
4The Home Depot$142.0B94%🇺🇸 U.S.
5Walgreens Boots Alliance$105.1B89%🇺🇸 U.S.
6Alibaba$91.5B97%🇨🇳 China
7Apple$70.9B87%🇺🇸 U.S.
8Aeon$64.3B93%🇯🇵 Japan
9Schwarz Group$56.5B32%🇩🇪 Germany
10Rewe$55.5B75%🇩🇪 Germany

Walmart towers ahead as the world’s largest retailer with $532 billion in domestic revenue—more than Amazon.com and Costco combined.

Known for its everyday low prices, Walmart achieves a competitive advantage through pricing goods approximately 25% cheaper than traditional retail competitors. Overall, groceries make up more than half of total sales. While its main customer base is often low and middle-income shoppers, the retail giant is seeing a surge in sales from higher-income customers as shoppers seek out lower grocery prices.

E-commerce giant, Amazon, is the second-biggest retailer globally, commanding nearly 40% of online retail sales in America. Since 2019, the number of Amazon employees has grown from 800,000 to over 1.5 million in 2023.

While the company has tried to introduce online grocery platforms to the market, it has largely fallen flat given its clunky system in a highly competitive market.

Like Amazon, China’s e-commerce juggernaut, Alibaba, stands as a leading global retailer. Overall, 97% of revenues were generated domestically through online marketplaces Taobao and Tmall. In recent years, the company has focused on international expansion, delivering products to 11 markets including America, in just five days.

Continue Reading
Appian-Capital

Subscribe

Popular