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With deficits running at $1 trillion a year, and in order to stay solvent, they will have at some point to cut spending, pay more taxes, or both.
High debt levels, falling housing prices, a lack of employment opportunities and wage stagnation are forcing people to curb their spending, pay down their debt and increase their saving.
PAGE 8 Bush Readies First Budget President Bush will present his first budget this week, and aides say it will show he can restrain spending, pay for his $1.6 trillion tax cut and overhaul Social Security.
Across the so-called peripheral EU states, from Greece to Portugal, Ireland to Spain, governments are slashing spending, pay and jobs to rescue their toxic financial systems and appease the bond markets.
He said: "We must be upfront with the British people that under Labour there would have been cuts and that – on spending, pay and pensions – there will be difficult decisions in the future from which we will not flinch".
The opponents of stimulus — largely the Chicago School and many political leaders in Europe — argue that the only way to make people and businesses feel more optimistic is to cut government spending, pay down debt and also (somehow) lower taxes and reduce regulation at the same time.
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Flext was an attempt to get more T-Mobile customers on to contracts: One2One had historically a far higher percentage of lower spending pay-as-you-go customers than its rivals.
Increased public spending pays for itself.
We voters, meanwhile, tend to oppose government spending in general while supporting the government programs that the spending pays for.
Both parties have promised a raft of public spending, paid for by recent offshore oil discoveries.
"More wasteful spending, paid for by borrowing and higher taxes, is a recipe for economic chaos.
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