Posted on 05/10/2012 5:11:18 AM PDT by Kaslin
I wrote a detailed blog post yesterday, showing that European governments have been very reluctant to restrain the burden of government spending.
Part of the problem is that the debate in Europe is a no-win exercise, pitting proponents of higher taxes (which is largely how Europe’s political elite defines “austerity”) against proponents of higher spending (notwithstanding a long track record of failure, the Keynesians have come out of woodwork and are claiming that bigger government stimulates “growth”).
With these terrible choices, no wonder the continent has such a bleak future.
Here’s a recent appearance on Fox Business News, where I discuss these topics.
Dan Mitchell Discussing Fake Austerity in Europe on Fox Business
I explain that Europe can grow and prosper, but only if politicians are willing to reduce the burden of government spending and lower tax rates.
But don’t hold your breath waiting for that to happen.
P.S. Americans shouldn’t get cocky. Our long-term fiscal outlook is equally grim. We can avoid a crisis if entitlement programs are reformed, but that obviously isn’t going to happen anytime soon.
“The spending of European governments has ranged between 40% and 60% of GDP for many years.”
http://www.economicpolicyjournal.com/2012/05/disunion-of-failed-states.html
I had no idea it was this bad until I read this yesterday. The European nirvana isn’t sustainable.
Sarkozy got fired because he raised the French retirement age from 60 to 62.
Message received, loud and clear. What European leader is going to stick his neck on the line over austerity after that?
And the U.S. spending is sustainable?
Obama has piled on 5 trillion in debt on us.
The Austerity in Europe is primarily massive tax increases, the spending of Social Welfare is still far beyond what the U.S. spends.
The U.S. has more debt than anyone. Not only the massive 15 trillion $ federal debt , but also all the states like Cali are more in debt and so are most individuals, businesses, local governments etc.
Over a 100 trillion in unfunded liabilities. Who will pay for all this?
We are done. How about trying to produce something here instead of in China?
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