Although fiscal responsibility is a proper goal for any government, it cannot be properly measured through deficit and debt targets alone. Those who demand budget cuts in the face of higher debt levels ignore the importance of public spending that strengthens the productive capacity of the economy over time.
LONDON—Whether hospitals can hire nurses, schools can repair roofs, or countries can build a clean energy grid often depends on factors that rarely make the news. For many governments, rules that limit deficits, debt, or spending ultimately determine whether they can invest in the future.