Aggressive government spending in wealthy countries is propping up global economic growth, but poses a threat to long-term financial stability.
From the US to Europe to Asia, countries are rolling out large stimulus packages financed by budget deficits, a trend that is expected to boost growth and jobs, The Wall Street Journal reported. But the record debt raises questions about the ability to weather future crises, and risks causing market turbulence: Japan’s bond market was roiled last week by concerns over government spending measures.
“The menace of unsupportable borrowing” now looms over the global economy, The New York Times wrote. “The more you consume now, the less you can consume later,” an economist said.
