“Politics and debt don’t mix well. Americans would be wise to look across the Atlantic to see how tough things can get,” the Wall Street Journal reports.
“The U.K. government demonstrated the problem with its annual budget, where it is stuck in a trilemma, unable to please lenders and voters while also doing the right thing for the economy. Something had to give, so on Wednesday the government ignored its promises to go for growth, and focused on the bond market and its political base.”
“France has the same trilemma, only worse. Government debt is higher than in the U.K., the fiscal deficit is higher, and not only are tax rises politically impossible but taxes are already so high that raising them further might be self-defeating.”
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