Governments worldwide owe an unprecedented $91 trillion, nearly matching the size of the global economy.

This massive debt, partly due to pandemic costs, threatens living standards even in wealthy nations like the United States.

Politicians are largely ignoring the issue, avoiding discussions on necessary tax hikes and spending cuts, and sometimes making promises that could worsen inflation or trigger financial crises.

The International Monetary Fund recently warned that the US must address its chronic fiscal deficits urgently.

Investors are increasingly anxious, with rising bond yields indicating higher borrowing costs and less funding for essential public services, CNN has reported.

This situation affects households and businesses by increasing borrowing costs and reducing economic growth, while also limiting governments’ ability to respond to economic downturns.

Written by B.C. Begley