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Governments worldwide are grappling with an unprecedented debt load, totaling a staggering $91 trillion. This amount nearly matches the size of the entire global economy and poses a significant threat to the well-being of their populations.
The surge in debt is partly attributed to pandemic-related costs, which have swollen fiscal deficits. Even in affluent economies like the United States, this mounting debt burden now jeopardizes living standards.
Despite the urgency of the situation, politicians across the globe, facing elections, are largely sidestepping the issue. They hesitate to be forthright with voters about the necessary tax increases and spending cuts required to address this borrowing deluge. In some cases, they even make extravagant promises that could exacerbate inflation or potentially trigger a fresh financial crisis.