A survey by RBC Capital Markets found that top business executives worldwide, concerned about the level of debt in their nations' economies, saw spending cuts, not tax increases, as the chief remedy for governments.
The third semiannual RBC Capital Markets Global Survey released Monday, which polled 461 finance and global business leaders, found that 46% believed their countries' external debt was growing at an unsustainable level. Almost half of those—49%—said they believed their governments would turn to spending cuts to control the level of debt. Three in 10 believed their governments would instead rely on raising taxes. Only 13% thought that their governments would utilize inflationary policies as the primary means of approach.
More than 60% of U.S. and U.K. respondents believe that their government's debt is growing at unsustainable levels. Among European respondents, euro zone periphery nations, including Portugal, Ireland, Italy, Greece, and Spain, are most pessimistic. Canadians were the most optimistic.
