As we watch yet another Greek tragedy, this one of an economic motif - we are reminded of the history of other nations that have fallen due to socialism and to run away entitlements. Of course, if you check your history in the last 200 years Greece has gone bankrupt nearly 8 times, so they don't really have a very good track record, and I myself might put it in the same category as Argentina - and well, here we go again. However, before we condemn them for their future fate as they leave the euro and the European Union, perhaps it's time that we look in our own mirror at the happenings here in the US.
Am I suggesting that socialism, a populist president, and a power-hungry group of men will continue to promise entitlements to the masses in order to stay in control? Yes, I suppose that's what I'm saying, and I'm sure you've thought of the same. Consider if you will that 53% of the people pay no income tax, and once you get over 50% of the people that are collecting money, rather than paiying in, they will continue to vote for free stuff, for as long as that gravy train exists - all aboard!
There was an article in the Wall Street Journal on May 10, 2012 by Spencer Jakab titled "Federal-Debt Dance Tastes Like Chicken," which had stated; "The federal budget is headed in less than 8-months for what FED Chairmen Ben Bernanke calls "a massive fiscal cliff." Yet stock markets seem to be operating under the assumption that a post-election, lame-duck Congress will take the sting out of expiring tax cuts and spending restrictions."
Well, obviously Ben Bernanke isn't the first person to make this statement, Chairman Alan Greenspan made it during his tenure at the FED. Painting ourselves into an economic corner, laden with debt is of our own doing, and we are no better than Greece, and shouldn't point fingers, until we change our ways. In fact, if Greece and the other PIIGS (Portugal, Ireland, Italy, Greece, Spain) cannot control their spending, and if the ECB becomes more like the Federal Reserve, then their only hope is to try to inflate their way out of it by lending easy money and printing more and more of it.
Of course, debasing the currency is not such a wise idea, and I'm quite certain the Germans won't stand for it, and if this continues in Europe, it will be Germany that leaves the Euro, after Greece, and perhaps a couple of others are thrown out or are forced to leave supposedly by their own accord. Does that mean the euro is dead, or the EU is finished, or the ECB is powerless to solve this problem? Yes, it is the proverbial; "slow-motion train wreck."
Now then, if the United States is headed down that same track, isn't it time that we do something about it? I will leave you with that thought, and I hope you will please consider what I've said here today, and educate yourself as to why socialism is so dangerous, and why it has never worked in history.
Lance Winslow has launched a new provocative series of eBooks on Economic Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
Article Source:http://EzineArticles.com/?expert
Source: http://newsandsocietyblog-economics.blogspot.com/2012/07/what-does-greece-and-us-have-in-common.html
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