Age of the financial limit

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Rich nations burn financial cranes. On Friday, Donald Trump has finally signed the Law of the “Big, Fine Bill”. The tax cut legislation is estimated to be added to the US deficit more than $ 3 billion over the next decade. In Japan, in Japan – where more than two and a few and a half years of the economy of public debt – the parties have started campaigns for the upper home elections and for sale taxes. And a few weeks ago NATO members – except Spain – from 2 percent of GDP to 5 percent to 5 percent, agreed to invest. Large debt stacks are no longer different in the cavid pandemic.

If the costs of defense are necessary, the increase in financial growth. New borrowing occurs with interest rates. Economic growth with debt burden prevents commercial wars and global uncertainty. Aging populations, the growth of future productivity is placed in a corner and will add to pensions and health documents. Many advanced economy should shrink their shortcomings to get debt trajectories under subtle control. But several people are going in the opposite direction.

Politicians are unable to do necessary. In the United States, the so-called government efficiency department – a reasonable idea, so far ferred – no year in one year, worth $ 2 billion. Trump’s bill cutting health insurance support for the poor, but future departments will be difficult to maintain this difficulty. In France, the government is looking for billions of euros to reduce high shortages, but the divided parliament of the nation fought to agree where the cuts are located. In Last weeksThe British Labor government has become more than £ 6.25 billion in opportunities planned to benefit from voters and after a noise after their own deputies.

Growth strengthening measures can facilitate debt pressures by increasing future tax revenues. Trump’s tax cutting bill Gives generous incentives for investment, but use the funds in the campaign gimmicks, including tax reduction for the wealthy. Independent forecasts are questionable that the bill will significantly raise the long-term growth. The White House claims that the tariffs will bring income, but they will also curb the work. Economists also consider new spending liabilities to the protection, and if the funds are not focused on research and development, they will increase the main growth pace.

All nations are in the same boat. After lifesty years, Germany had a financial shaking room for loaning German to loan this year. Last month Budget Project Sensitive funds to make the collapsed infrastructure of the nationality to raise the size of the size of the size. Again, it depends on how much the construction of many things is implemented. This is also concerned that the latest expansion of the investment in the capital’s state capital.

In all, the public debt ratio Developed economies 110 percent of the civar and rise. Sooner or later governments will have to face music. So far, as if today’s leaders hope that someone watching them will do hard. In the interval, investors will require a higher award to lend governments, especially Central Banks step back from buying government bonds. This means debt payments will eat a growing share of public fire force.

The easiest part of the board is spending money. It is more difficult to reduce costs and design policy to grow. However, this is the work of politicians to make difficult choices. Growing debts are more important. If the task is not serious enough, then the bond markets will be.