Increase in the Gender Pay Gap
Ruling Party
The Democratic Party controls the government.
Political Structure
The USA has an executive president, elected for a four-year term of office by universal suffrage, who then selects and directs his own cabinet (“Administration”). The US Congress comprises a 435-member House of Representatives, half of whom are elected every two years, and a 100-member Senate, which serves for six years but a third of which is re-elected every two years. The country has a strong federal structure, and devolves its legal and fiscal system to a considerable extent.
Last Elections
Elections to the House and Senate were held in November 2010. In the House, the Democratic Party now controls 192 seats while the Republican Party has 242 seats. In the Senate, the Democrats now hold 51 seats and the Republicans have 47 seats. There are also two independent senators (who caucus with the Democrats). Presidential elections were held in November 2008. The Democrat, Barack Obama, defeated John McCain with 53% of the vote.
Political Stability and Risks
Spending on Social Security and Medicare (along with Medicaid assistance for low-income individuals) claim more than two-fifths of federal spending and are rising at an unsustainable rate. Because of the high unemployment and low government revenues owing to the weak economy, the funding forecasts for both programmes have been cut back. Prior to the recent reform, Medicare funds were expected to be exhausted by 2017. Funding for social security will last longer – possibly to 2038 – but these needs must also be addressed within the near future.
International Issues
Relations with Iran are tense owing to the countrys nuclear ambitions. Ties with North Korea are complicated for the same reason. The USA and the EU have some differences over environmental matters. Relationships between Washington and China are becoming increasingly strained owing to the latters reluctance to let its currency appreciate.
In the western hemisphere, there are tensions between Washington and Mexico and other Central American countries over the sensitive issue of illegal immigration into the USA. Relations with Venezuela are plagued by a number of differences.
Government Finance
The Congressional Budget Office expects the fiscal deficit for 2011 (which ends in September)