BlackRock CEO Larry Fink: ‘Today the G7 Average Debt-to-GDP Is 129%, No Matter How Much We Tax, How Much We Cut or Reduce that Debt, It Will Not Be Enough’

EXCERPT:

FINK: “But if I could convey one more important message today, it would be that countries that need growth most right now are not just emerging economies. Great economic powers, including the G7, are, in fact, on the list and need growth going forward. All of us are staring down a growth dilemma. Whether we solve it or not, it’s a significant economic fork in the road for our countries. Today, the G7 average debt to GDP is 129, 129%. No matter how much we tax, how much we cut or reduce that debt, it will not be enough. The only way we could achieve this future of growth is by truly growing out of it. But just growth is becoming more important because we need to be focusing on our fiscal health. It is also becoming much more difficult to achieve. Within 25 years, most of the G7 countries will be on demographic downslope. Working age population will decline, the ceiling on growth will get lower and lower. This is why building new infrastructure is critical, especially through public-private partnerships. Infrastructure investments is a counterforce to the high-debt, low-growth economies."