Blog #6: $40 660 121 927 289 Cumulative global public debt at 5pm on Now 18th

This article from The Globe and Mail is quite interesting as it got me thinking: I know that countries around the world are all in debt, but for what reasons are they borrowing huge amounts of money? The article it states “governments have borrowed money due to the recession and financial difficulties in the recent years.” They help pay for bailouts, social programs to help those that are affected by this crisis, such as those unemployed.

The financial support that the government provides is similar to a reward system. They help those that have troubles by giving them a way out, however, in some situations, because of their support; unemployment rate for example, has gone up. Incentives to work have decreased. People rely more heavily on the help, especially financially, from the government. The government’s good intentions of helping the country regain its balance might be the reason why they have not recovered. It seems like they are pushing too hard on that financial factor, when instead, maybe they should think of other strategies to help the people. This unbalance results in this system that is sometimes considered dysfunctional, alike to the Balancing Act that we discussed in class.

Leave a Reply

Your email address will not be published. Required fields are marked *