Katharyn Gillam at France24 writes:
In its edition set to hit news stands on Friday, the highly-respected British weekly [The Economist] warned that France’s high taxes on businesses were eroding the country’s competitiveness and that France was a bigger danger to Europe’s single currency than the debt-stricken countries of Italy, Spain and Portugal………The right-leaning magazine highlighted [France’s] strategic position in the Eurozone and its massive public sector that accounts for 57% of gross domestic product…….
via French fury at Economist’s ‘time-bomb’ warning – FRANCE – FRANCE 24.
Not matter how mad the French left get, the fact remains that GDP created by borrowing creates negative GDP later when the stimulus can no longer be sustained and the interest and capital have to be repaid. By way of example Australia borrowed 3% of GDP for building school halls at dubious prices for a once only benefit. When the loans have to be repaid, something else will have to be cut in order for the banks to be paid their loans. Excessive government spending does damage to the creation of sustainable economic activity and pushes out private enterprise. It has happened before and it will happen again.