High Value-add Analytics #611 (HVA #611) provides senior decision-makers insightful analytics of the financial performance and position of the U.S. Federal Government over the last 50 years (1974-2023) and projected next 6 years (2024-2029), by using the Citizens’ Wealth Framework (CW Framework) and its 12 KPIs. Total period of 56 years.

We and our key stakeholders care about government financial performance benchmarking and the Citizens’ Wealth Framework (CW Framework), because government financial decisions directly affect the probability and consequences of debt, currency, and financial crises, which have a disproportionally large impact on society’s most financially vulnerable.

5 Lessons to Learn:

1. Quantum Leap: Learn why the CW Framework and its 12 KPIs have been called both "a quantum leap in government financial performance management" and "the greatest advance in sovereign risk analysis".
   
2. Better decisions: Learn how to use the CW Framework 12 KPIs to better understand and make higher integrity government financial prioritization and impact decisions.
3. Benefits: Learn how to educate key stakeholders on the benefits of using CW Framework 12 KPIs to assess sovereign credit.
4. CW versus Debt: Learn how to educate key stakeholders on the importance of Citizens’ Wealth using the Government Total Balance Sheet (GTBS) based on international public sector accounting standards, in contrast with the financial debt and cash deficit metrics, which by definition include only a fraction of the GTBS and only include cash outflows, not economic costs.
5. Excels: Learn from 78 unique analytics Excel files organized into 9 sections.

12 Unparalleled Insights Highlights:

From a financial perspective, senior decision-makers will quickly gain 12 unparalleled insights from understanding the past 50 years (1974-2023) and HVA #611 provides additional information on projected next 6 years (2024 to 2029) financial performance of the U.S. Federal Government:

1. Citizens’ Wealth (CW1): Annual change in Citizens’ Wealth 1 (CW1) per person (KPI #1) and CW1 per person at year-end (KPI #9) from 1974 to 2023.
2. Government Total Net Worth (GTNW): Annual change in U.S. Federal Government Total Net Worth (GTNW) per person (KPI #2) and GTNW per person at year-end (KPI #10) from 1974 to 2023.
3. GTNW % of GDP: Annual change in GTNW as a % of GDP (KPI #3) and GTNW as a % of GDP at year-end (KPI #11) from 1974 to 2023.
4. GDP "Multiplier" and "Inverse Multiplier": GDP multiplier that the U.S. Federal Government obtained for the annual change in GTNW (KPI #4) and, conversely, the cost in GTNW for one additional unit of GDP (KPI #5) from 1974 to 2023.
5. CW1 Created/Destroyed "Return": CW1 "return" (created or destroyed) that the U.S. Federal Government obtained for the annual change in GTNW (KPI #6) from 1974 to 2023.
6. CW1 Value Created/Destroyed per Day: CW1 value created/destroyed by the U.S. Federal Government per working day (KPI #7) from 1974 to 2023.
7. CW1 Change "Swing" per Person: The relative difference in the change in CW1 per person between the latest 5 years and the prior 5 years, from 1984 to 2023.
8. CW1 % of GDP: CW1 as a % of GDP (KPI #12) of the U.S. Federal Government at year-end from 1974 to 2023.
9. Performance Gaps: Comparison of the U.S. Federal Government's financial performance to external benchmarks, and examples of performance gaps.
10. Projected Debt vs. Actual Debt: Examples of projected vs. actual financial performance from multiple sources.
11. Federal vs. S&L GTNW Comparison: Comparison of ratios between U.S. Federal Government and State & Local Governments on GTNW change between 2007 and 2023.
12. Federal vs. S&L Total Assets and Debts Change Comparison: Comparison of ratios between U.S. Federal Government and State & Local Governments on Total Assets and Total Debts change between 2007 and 2023.

Note: updated FY2024 comparative data is available in the final pages under "Supplemental Information".

HVA#611 updates and replaces HVA#610.