Common sense or economic policy for survival. Its alarming that most governments regardless of class; first world, second world, third world or no world, are carrying huge debt burdens . Governments are constantly riddled with staying afloat as bankruptcy knocks on the door, creditors barking more loudly and credit worthiness; a thorn in the flesh. Which way out? Debt or better still austerity engineered debt.
Why is the cost of governance so high? Why do nations have to borrow to sustain the act of governance, growth and possible development. Economies thrive on sustained growth and pushing development. With this excuse, many governments spend beyond projected revenues, and support such spending with debt, and even more debt burden. Citizens are the victims, lying on the brinks of austerity as the ripple effect of a rising debt burden trickles down, gradually sinking business and drowning individuals.
What is the price for growth? What is the cost of development?
I firmly believe governments need to exercise caution with debt and austerity measures. Governments need to re-evaluate the productive capacity of their economies and focus on how to push that capacity. Investments should be channeled in supporting the real economy and in creating an environment that supports small indigenous business. Lastly, governments must think like business men with a high social responsibility consciousness.
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