The World Economy Is Hooked on Government Debt

Record Debt in the World’s Richest Nations Threatens Global Growth

For decades crushing debt has spread misery in the world’s poor and lower-income nations. But the menace of unsupportable borrowing that now hangs over the global economy emanates from some of the richest countries. Record or near-record debt in the United States, Britain, France, Italy and Japan threaten to hamstring growth and sow financial instability around the globe. At home, it means countries must make interest payments with money that ot…

The World Economy Is Hooked on Government Debt

Crushing debt threatens wealthy nations as interest costs drain government budgets

The problem of overwhelming debt has shifted. While poor countries struggled with this burden for years, the threat now comes from some of the world’s wealthiest nations. Countries including the United States, Britain, France, Italy and Japan are carrying unprecedented or near-unprecedented levels of debt. This creates risks that could slow economic progress and destabilize financial markets worldwide. Rising costs leave governments with fewer o…