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Thursday, November 11, 2010
Global Belt-Tightening
From CNN Money.
"While such belt-tightening may be long overdue, it will come at a cost to the standard of living of the workers in many of the established economies whose leaders are set to meet at the G-20 economic summit this week in South Korea.
That's because less spending can only lead to less economic activity and slower growth."
...
"There are more hurdles we have to clear to sustain an ongoing rise in the standard of living," said Sean Snaith, economics professor at the University of Central Florida.
Will the world's superpowers ever return to their former glory? Before developed nations can get back on a path to strong growth, they face a variety of obstacles."
1. Debt
2. Aging populations
3. Global competition
See original article link above for details on each.
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