If anybody is still wondering why England didn’t join the Euro-Zone all they have to do is look at what’s going on in the region. First there was a Greek deal, and then there wasn’t. Then a scheduled referendum, and then a cancellation. Then there was a coalition, then nothing of the sort. The Italian Prime Minister won’t resign, but the Greek leader is willing. What a socialized mess. Great Britain saw this coming long ago.
It was the great British leader, Margaret Thatcher, who said: “The worst thing about socialism is that sooner or later you run out of other people’s money.”
That’s where Greece is right now. And their misery has plenty of company: Italy, Spain, Portugal, Ireland, and France, are right behind them.
As in all socialized societies, it is those who produce the least (i.e. Greece GDP = $304 billion) that drain prosperity from the best (i.e. Germany GDP = $3.3 Trillion.) Here’s how that looks in chart form (Source: Google.)
Some people think that it’s “fair” or “just” for German people to pay for Greek entitlement benefits because Germany is rich compared to Greece – or because they share the same currency, or because they’re part of the same union. Whatever the case, I totally disagree.
In Greece, workers start in their 20’s and retire at the youthful age of 52. That’s why their GDP doesn’t move. They’re not working hard or long enough. Add this to a Greek life expectancy of 80 years and what you have is one very long, and very expensive retirement benefit for not much effort. The deal is too good to be true – like a dream.
Until the country goes nightmarish broke and runs out of other peoples’ money, of course. Unfortuntaely, that’s where Greece finds itself today. Their good dream soiled on the backs of complacent labor and stupid governance.
Those who attack the rich and demand more benefit for less labor are usually the worst producers (see Greece in above chart.) The rich (i.e. Germany) who employ, labor, and produce the best are soon drained by the growing number of lackluster performers; and then soon, most are not much better than the worst. In other words, the quality of life for everyone diminishes in a depreciating economy.
Unfortunately, that is where Europe finds itself today.
But this isn’t just a European thing. The US government, too, has created a socialized financial mess. Like Europe, American governors continue to buy votes at alarming prices by offering unaffordable benefits and entitlements that they pay for by printing more money, seizing more land, and then mortgaging it to China.
Sadly, that’s where America finds itself today. Another good dream soiled.
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