Imagine if one day your debt piled so high you owed more than three times your income.
For an individual, it’s a nightmare scenario. Unimaginable. For countries, it’s simply how the economy works. Financial obligations are stacking higher each year, and global debt history shows us a worrying statistic — the world’s nations owe three times more money than they spend in a single year.
Governments, households, and companies have contributed to the current debt of more than $243 trillion, and consumerism appears to be the driving force. We’re encouraged to spend more. And why not? Spending keeps money moving through the system, encouraging a healthy economy – and sometimes tax cuts and increased government spending are the only way to get a country out of recession.