Greece Now, Who’s Next?
May 14, 2010
Just when we begin to believe that our economy is on the upward trail to recovery and the world economy is looking more promising, there we see Greece – in the headlights. World stock markets gyrate up and down. Riots in streets in Athens – smashing windows, looting stores, throwing firebombs. Three people are killed.
The Greek government has been spending too much. Greece is broke. All of those lavish promises of retirement at 50 years with full pension are just a dream.
Cradle-to-the-grave government dependency is not sustainable. Eventually, you run out of other people’s money. This is especially true in Greece, where government corruption is rampant and tax avoidance commonplace.
By itself, Greece represents only 2% of the collective economies of the European Union. Greece is nothing. Greece should be irrelevant, but the fear is that Greece could be just the first domino to fall. Standing close in line shouldering massive debt are Portugal, Spain, Italy and the British.
The expectations of the citizens of many of the European countries are not affordable. Politicians promise too much. Does that sound familiar?
We may not want to admit it, but our own debt is every bit as burdensome as some of the European nations. It may not be an “apples to apples” comparison, but some of the European countries are all but bankrupt. And here in the U.S., we have states that have debts they can’t pay. Reference: California, Illinois, Michigan, etc.
I don’t think the federal government should bail out the states. However, the EU is prepared to bail out the EU countries.
There is a lesson here. And I hope we are paying attention. We spend too much. Cut spending. The government cannot afford to pay for everything the citizens might like to have. Dependency must be replaced by more personal responsibility. Socialism is a failed system. Admit it!
It’s Greece now. Who’s next?
In closing, I would encourage you to access my website, which archives my radio commentaries dating back 10 years and will go back 20 years when complete. Check on what I said back then. Go to www.johnblockreports.com
Until next week, I am John Block in Washington.