Factoría Libertatis

Tag: Public Debt

What If Approving a Deficit Were a Crime?

Illustration of Guatemala's budget deficit, public debt and a proposal to penalize the approval of government spending without adequate funding.

In 1993, Guatemala effectively closed the door to financing government spending through monetary issuance, helping usher in decades of greater price stability. This essay asks whether the country should take the next step: prohibit deficit budgets by law and impose consequences on officials who authorize spending without identifying the resources to finance it.

How Much Equality Can Freedom Bear?

Illustration of the balance between equality and freedom and the distinction between equality before the law and equality of outcome.

Equality before the law gives everyone the same rules; equality of outcome requires continuous intervention to equalize what people ultimately receive. From Tocqueville and Bastiat to Guatemala’s taxes, exemptions and public spending, this essay asks how far equality can advance before it begins to replace freedom.

Ferguson’s Law Arrives in Guatemala

Ferguson's Law in Guatemala: public debt interest now exceeds spending on health, security and infrastructure.

Guatemala’s 2027 budget reveals a critical fiscal milestone: interest payments on public debt now exceed spending on health, security and infrastructure. This essay applies Ferguson’s Law to examine what that means for the country’s future.

When a Country Spends in Emergencies… as It Does in Normal Times

Illustration representing the burden of Guatemala's growing public debt and government spending on future generations of taxpayers.

Diego turned eighteen just a few weeks ago. Next year he will vote for the first time and, like thousands of young Guatemalans, he still doesn’t know where he will study, which company will give him his first job, or how much he will earn five years from now. What he hasn’t yet imagined is […]