Life After Debt

Sarah Jessica Parker and her Manolo Blahniks are out and Grandma Walton and her sensible apron are in in The Economist’s depiction of the world in the aftermath of the age of easy credit. The magazine warns that weaning rich countries off their debt addiction will cause withdrawal symptoms. “Austerity does not appeal to voters, who may work off their frustrations on politicians and (worse) foreigners.” The first priority for policymakers is to generate growth, which will be comparatively easy for America, with its relatively young population, and not so for Continental Europe which may see its young talent take flight.