Pervasive Public Debt Hampering Global Economies

Public debt continues to burden many countries, especially in Japan where the government has put money toward bailing out banks, designing spending programs and repairing damage from the 2011 tsunami disaster. Euromonitor’s government, labor and education research manager, Carrie Lennard, explains that in order to raise money, Japan will raise its consumption tax. This tax increase will have a negative effect on consumer spending. The United States is also struggling with high public debt due to spending on wars in Iraq and Afghanistan, and the automotive industry bailout. Lennard also gives several examples of countries where public debt is being reduced.

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