Beware the Debt Trap: Reckoning Awaits

Democracies often face the temptation of politicians promising affordable solutions that ultimately incur costs. During the pandemic, significant spending was necessary to combat recession, but it led to widespread debt accumulation not only among governments but also corporations and financial managers, who leveraged low interest rates to enhance performance. As interest rates rise and no longer remain at historical lows, a reckoning approaches regarding the substantial debt accrued, necessitating a more serious evaluation of financial obligations.