It's not just America with a debt problem. World governments face the highest debt costs since 2007.
Business InsiderMAR 30
Report: Global Debt Eclipses $100T
Above: Visa, Mastercard, and American Express logos on credit and debit cards next to US one-dollar banknotes. Image copyright: Anna Barclay/Contributor/Getty Images News via Getty Images
The Spin
Narrative A
The current levels of debt are unsustainable and threaten global economic stability. Organizations like the International Monetary Fund have issued a stark warning that the situation is even worse than anticipated — skewed by an ongoing optimism bias in economic forecasts. This concerning trend could lead to debt levels exceeding current projections by ten percentage points in just a few years. There's an urgent need for action.
Narrative B
While rising debt levels may raise alarms, they can be effectively managed through strategic borrowing that targets productive investments and fosters long-term growth. By providing appropriate incentives for corporations to invest in productivity enhancements — and letting the market do its work — the global community can be more resilient and focused on sustainable progress.