The US consumer (risk) in one chart: credit card debt at record high, personal savings rate record low
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France’s fiscal troubles dominate the headlines. Yet its neighbour deserves more attention. Switzerland wasn’t always a model of sound public finances. During the 1990s, federal debt surged. Then came a turning point. In 2001, 85% of Swiss voters approved a constitutional “debt brake”, implemented in 2003. The principle is simple: → Save when the economy is strong. → Allow deficits during downturns. → Balance spending and revenues over the economic cycle. → Permit exceptional spending during major crises. The results? Federal debt fell from 56.2% of GDP in 2003 to 37.5% in 2024. Economic growth and rising revenues helped. The rule provided a framework that constrained persistent deficits while preserving room to respond to shocks. Switzerland and France have different institutions. Copying a rule alone would not guarantee the same outcome. But the Swiss experience challenges the idea that rising debt is inevitable. Fiscal discipline requires more than promises. It requires credible rules—and the political commitment to respect them. Should Switzerland feature more prominently in Europe’s fiscal debate? Source: Riccardo Trezzi
I cut off the peaks so we can better see the troughs. -- For decades, this was THE gauge to measure the labor market. Now it's making a case this is the best US labor market in our lifetime... Source: Jim Bianco

