They continue to insist that it's no big deal that they are speaking in the language of trillions of debt, or that China may well own the European economy in a matter of months and that there just is no money left to run the country.
It's not a pretty scene.
This article, refreshingly, walks people through the reality of the situation.
Americans have to wean off big government "entitlement" programs-but no politician, no party has the guts to make people down that medicine. Americans-the ultimate lovers of freedom and individual responsibility and liberty, keep wanting to take a government spoonful of sugar with every day of life.
It's a mess. Here is a fact:
"To flourish, the welfare state requires favorable economics and demographics: rapid economic growth to pay for social benefits; and young populations to support the old. Both economics and demographics have moved adversely."
Another inconvenient fact:
"Until the financial crisis, the welfare state existed in a shaky equilibrium with sluggish economic growth. The crisis destroyed that equilibrium. Economic growth slowed. Debt -- already high -- rose. Government bonds once considered ultra-safe became risky."
And:
"What separates the United States and Europe is that (so far) we haven't suffered a backlash from bond markets."
And the final warning shot, very Steynian actually:
"The paradox is that the welfare state, designed to improve security and dampen social conflict, now looms as an engine for insecurity, conflict and disappointment. Facing the hard questions of finding a sustainable balance between individual protections and better economic growth, the Europeans have spent years dawdling. The parallel with our situation is all too obvious. "
No comments:
Post a Comment