Europe's real problem: Lack of growth By Fareed Zakaria, CNN October 16th, 2011 02:50 PM ET If the Greek crisis morphs into an Italian crisis - Italy being too large to bail out - the entire structure of post-World War II Europe could unravel. Finally, European leaders seem to recognize that their strategy of kicking the can down the road has not worked. The result will not be a dramatic solution - that is not how Europe works - but, more likely, a series of steps that together will be more comprehensive than anything done before. But they will not address Europe's core problem: a lack of growth. Italy's economy has not grown for an entire decade. No debt restructuring will work if it stays stagnant for another decade. Even Germany is not immune, with an average growth rate of only 1.5%. That's not much of an engine for Europe. The fact is that Western economies - with high wages, generous middle-class subsidies and complex regulations and taxes - have become sclerotic. Now they face pressures from three fronts: demography (an aging population), technology (which has allowed companies to do much more with fewer people) and globalization (which has allowed manufacturing and services to locate across the world). If Europe - and, for that matter, the United States - cannot adjust to this new landscape, it might escape this storm only to enter another. ------------------------------------------------------------------------------ This is the result of 60 years of socialism. Look, Europeans suffered a lot with the two world wars and embarked upon this programme of socialism to "relax" and "take it easy". Unfortunately it has spawned an entire generation where hard work and productivity is all but a foreign concept. Now they have to suffer the consequences. You cannot eat without WORK. from UK to Greece, that entire continent is in the gutter. still want to follow in Europe's socialist footsteps, USA?
When I was in Europe (Germany,Netherlands) it seems everyone has it easy, short working hours. free medical etc..
Just like my Grandpa told me many years ago. Too bad the greedy little bastard OWS crowd never learned that lesson.
"You cannot eat without WORK." Sure you can, the problem is that some one else is doing the work and paying for the food. All these cretins simply think they're going to end up on the food end of the equations and not on the work side.
And isn't that the creed of the Democrats? "Elect me [Democrat], and I'll see to it that somebody else pays for your food, lodging, transportation, health care, education, big-screen TV, etc.... and you won't have to do anything except sit on you ass, in front of your big-screen TV that somebody else paid for, and vote the right way... " Sadly and unfortunately, there is a lot of appeal to that message.
Sweden nationalized its central bank, escaped the financial crisis; To end American woe, a single thing can be done is to nationalize the FED. Banker's media tries to distract populace from that fact, muddy the water by doctored fights between conservative/liberal, capitalism/socialism, white/non-white, long lundary list of things to divide American people.
This is a false assertion. First there is no socialism in Europe. Only Corporatism like we do in America. Some countries have abused more than others. Second, some European countries are in trouble but not for the reasons we are told. It is vital for establishment here to hide the good things Europeans enjoy. What better way than to point at their financial problems as a result of having a few social programs. The truth is that these countries are facing ruin not because they have good medical and education programs. They face collapse for the very same reason we face collapse here in America. 1- Huge UNPAYABLE debt. 2- Public pensions for political officials. 3- Partnership with few favored firms. Greece is in trouble because people there can retire at age 50 from public work and entitled to 110% of their salary. Firefighters are paid around 100K. And the list is endless. Americans must be denied proper health care and decent education. The philosophical story tale of Capitalism vs. Communism has been replaced with European Socialism. A new enemy must always be created to keep this little game going while the rich grows monstrously rich. And if you dare to point out these mistakes they are not late to ask you to leave the country. Maybe that will happen some day.
Free medical? Hmmmm...what's so free about it? Six pack of beer is $20-25 (Norway anyway)...and have you looked at the fuel/gasoline prices? Not...take a look... How about the VAT...most around 20+%... So the "free" suddenly is not free...
Free medical for population is not socialism. It is a human right. Welfare programs for stubborn runaway drug addicts, round after round of unemployment benefits, $20M payout for 6 months of work for CEOs, $300 staplers or water faucets for army inventory.................this all is socialism which eventually stagnates and they decays the whole economic machine.
I'd like to see America move away from a fiat currency and go back to the gold standard, as well as do away with fractional reserve banking. Yes it will dampen (but not eliminate) growth, inflation, wealth creation etc., but will make our financial system more sound and robust. Also, I think the argument that there is not enough gold to back all the demand for money is a a red herring.