By Eric Swanson
In a surprising move by the leaders of the 20 biggest economies, the G-20 decided to halve national deficits by 2013.
“‘Advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016,’ according to the statement.
World leaders generally sided with cutting spending and raising taxes, despite warnings from President Barack Obama that too much austerity too quickly could choke off the global recovery.” – Associated Press
This is a surprising, but positive turn of events that was not American-led. It seems the rest of the world understands the need to place limits to a nation’s debt consumption. It seems the rest of the world understands that unrestrained debt consumption is not sustainable and harmful to the macro-economy.
It wasn’t too long ago that influential leaders understood the pain that too much debt can have on a country:
“I, however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.” – Thomas Jefferson
However, “history has a way of repeating itself”, especially for those who don’t learn from it, right?
How does this news affect you? Do you believe that Americans, seeing their leaders take a position of debt reduction, will in turn start reducing more personal debt? Will this news affect the Consumer Debt Clock?
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