Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm no economist. In fact, I'm pretty down right ignorant when it comes to these things. However, just as a lay person sitting on the sidelines, looking at things.
People complain about the United States and its military complex and "corporate welfare." They say (yes, a general term, I realize this, I am not speaking to just one person) if you got rid of "them two Bush wars and cut corporate welfare, our debt wouldn't be an issue."
It seems to me, these countries in Europe, have severly downsized their military and don't have near the "corporate welfare" the US has. None of them, including the UK are involved in Iraq anymore and have severely limited their involvement in Afghanistan.
However, what they do have is massive social programs. It also seems to me, that not all persons contribute to these massive social programs.
Now, Europe, including the UK, are buckling under their massive debt problems, which have to be associated with massive social programs, with not enough people paying into them.
Yes, you will get those who say: But, look at Norway, Sweden, etc. Yes, those seem to be the EXCEPTION's, not the rule. Greece, Italy, Portugal, and Ireland will default; sooner or later. Everyone is admitting to that. Other countries are on the brink. France, owns so much of that debt, they will crumble, if ANY of those countries default.
So my question is, what is the answer? NO country can keep giving away social entitlement programs, without funding them. You can't "tax the rich" your way out of this. Its one slice of the pie, for sure. However, in and of itself, it won't work alone.
However, what they do have is massive social programs. It also seems to me, that not all persons contribute to these massive social programs.
Now, Europe, including the UK, are buckling under their massive debt problems, which have to be associated with massive social programs, with not enough people paying into them.
Yes, you will get those who say: But, look at Norway, Sweden, etc. Yes, those seem to be the EXCEPTION's, not the rule. Greece, Italy, Portugal, and Ireland will default; sooner or later. Everyone is admitting to that. Other countries are on the brink. France, owns so much of that debt, they will crumble, if ANY of those countries default.
Thing is, what do those groups of countries have in common? Norway, Sweden, Germany etc. The ones with strong economies: What they have in common is massive social programmes.
The other group, Greece, Italy, Portugal etc, what do they have in common? Far less expansive social programmes, down to 1/3 of the economically strong countries (per person). Lower than the USA in many cases. Also, unlike the strong countries, a poorly regulated banking sector. If you look at the coutries that have problems, there is a 100 % correlation with a poorly regulated banking sector, and about 85 % with low spending on social programmes.
On the other hand, the countries that are economically strong all have massive spending on welfare programs and strongly regulated, conservative, banking sectors. Often after going through a banking crisis of their own:
The European banks and governments are still suffering from the hangover effect of US toxic assetts among other things. Add to that their continued bailouts of the weakest links in the euro and the entitlements they must fund.
That said the financial structures of the European banks and US banks are much more stable than they were following the toxic derivatives crash of 2008.
Western civilization is going to have to come up with a way to agree to dismiss debts because there is not enough money in the world for the US and Western Europe to pay the debt which has been created.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
