An article in the Statesman has a fairly balanced view of the situation in Panama. I think it is an interesting analogy to compare the canal expansion as a stimulus package equal to 25% of the Panama GDP as opposed to the U.S. package of 5%. With this kind of debt being burdened on a small country like Panama I really don't believe this is a good thing. Spending when your deep in debt and the economy is sinking seems contrary to logic. But when it comes to government spending, there is always little logic. I guess one thing will be settled in the long run. If Panama continues with the expansion, and booms, and is able to pay off the debt then spending your way to prosperity will be proven.
Excerpts: Percentage wise, the canal expansion dwarfs any stimulus project the United States is planning. The project represents nearly a quarter of Panama's $23 billion gross domestic product. By comparison, the $787 billion stimulus package in the U.S. represents about 5 percent of America's $14 trillion gross domestic product.
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