The rich world faces a brutal spending crunch
Countries including America, Britain and France are up against remorseless fiscal logic
![Illustration of a politician standing at a podium throwing money in the air.](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240413_FND001.jpg)
A decade ago finance ministries were gripped by austerity fever. Governments were doing all they could to cut budget deficits, even with unemployment high and economic growth weak. Today things are very different. Across the West, most economies are in better shape. People have jobs. Corporate-profit growth is strong. And yet governments are spending a lot more than they are taking in.
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This article appeared in the Finance & economics section of the print edition under the headline “Fantasy economics”
Finance & economics April 13th 2024
- The rich world faces a brutal spending crunch
- Ukrainian drone strikes are hurting Russia’s oil industry
- Would America dare to bring down a Chinese bank?
- When will Americans see those interest-rate cuts?
- China’s state is eating the private property market
- How fast is India’s economy really growing?
- What China’s central bank and Costco shoppers have in common
- What will humans do if technology solves everything?
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