In Greek Crisis, Some See Parallels to U.S. Debt Woes
By DAVID LEONHARDT
NYT
It’s easy to look at the protesters and the politicians in Greece — and at the other European countries with huge debts — and wonder why they don’t get it. They have been enjoying more generous government benefits than they can afford. No mass rally and no bailout fund will change that. Only benefit cuts or tax increases can.
Yet in the back of your mind comes a nagging question: how different, really, is the United States?
The numbers on our federal debt are becoming frighteningly familiar. The debt is projected to equal 140 percent of gross domestic product within two decades. Add in the budget troubles of state governments, and the true shortfall grows even larger. Greece’s debt, by comparison, equals about 115 percent of its G.D.P. today.
The United States will probably not face the same kind of crisis as Greece, for all sorts of reasons. But the basic problem is the same. Both countries have a bigger government than they’re paying for. And politicians, spendthrift as some may be, are not the main source of the problem.
(More here.)
NYT
It’s easy to look at the protesters and the politicians in Greece — and at the other European countries with huge debts — and wonder why they don’t get it. They have been enjoying more generous government benefits than they can afford. No mass rally and no bailout fund will change that. Only benefit cuts or tax increases can.
Yet in the back of your mind comes a nagging question: how different, really, is the United States?
The numbers on our federal debt are becoming frighteningly familiar. The debt is projected to equal 140 percent of gross domestic product within two decades. Add in the budget troubles of state governments, and the true shortfall grows even larger. Greece’s debt, by comparison, equals about 115 percent of its G.D.P. today.
The United States will probably not face the same kind of crisis as Greece, for all sorts of reasons. But the basic problem is the same. Both countries have a bigger government than they’re paying for. And politicians, spendthrift as some may be, are not the main source of the problem.
(More here.)
Powered by Blogger
3 Comments:
here is yet another piece that misses the mark once again. Which came first - government largesse or people clamoring for government largesse? Name s government program that has ever come in on the numbers suggested when the program was passed. Medicare? Medicaid? Food Stamps? Social Security? Farm subisidies? Education?
The problem is government implements a program for a group of people and taxes another group to pay for it to the point where there are too many people earning more from government than they pay in. We can tax the uber-rich at 100% and that will only generate $400 billion. To be sure, in 2008, 143 million tax returns paid no federal income tax at all - the rest of us picked up the tab. Now, the tax code is being used as a welfare program where people file a return and get a check from government. 60% of Americans get MORE from government than they pay in. We have trillion dollar budgets with trillion dollar debts and we have a debt crisis in America fueled by government policy which found its home in housing. Look at Freddie and Fannie - Fannie Mae this week said it will be insolvent for years to come and so the bailouts will continue because Freddie and Fannie were told to buy the bad mortgages being written to people who had no way of paying them back - home loans, auto loans, re-fi loans, student loans, you name it. This is all fueled by government policy in order to get re-elected.
As for Bob Bennett, he was thrown out because he voted for the stimulus, the bailouts, and health care. Look, we the poeople are not as stupid as David Leonhardt would have us believe. We know the health care reform is going to explode costs after 2020. We also know that the problem is the government unions who are the most powerful lobby in Washington and in every state capitol. 20% of federal workers earn 6 figure salaraies. Teachers can retire at 50 with 590 of the salary and $500,000 in health care benefits. In New Jersey, teachers pay in $162,000 to their retirement and are guaranteed $2.5 million in retirement. California has a $500 BILLION unfunded pension liability. No one can tell me that the people are the problem here and not the politicians.
I could go on, but my point is these problems are first fueled by government policy, and not by people asking for these programs as the author suggests. Politicians care about one thing and one thing only - re-election. And they bribe the public with the public's money through Freddie, Fannie and being the largest employer in every state and with 2 million federal workers. de Toqueville warned us about this all the way back in the 1840s.
What happened in Greece is GOING to happen here. Anyone who thinks different has no understanding of the underlying problems fueled by government policy for the last 70 years.
I also forgot to mention that while the Democrats label the Republicans as the party of 'no', the problem since the 1930s has been both parties have far too often said 'yes' when in control of Congress. Eventually, it all gets to a point where Greece is at and where we are headed in this country. It's already here, in fact. We have delayed and delayed and delayed the costs of these programs so far out in the future, that the future is here now.
We need more 'no' from our government and much, much, much less 'yes'.
well, well, well, the very day after I posted the fact that David Leonhardt's analysis that the Tea Party movement is way off base with their criticism of Bob Bennett and that the health care bill will reduce costs, the CBO increases the cost by $115 billion AND THE PROGRAM HASN'T EVEN BEEN IMPLEMENTED YET!!
I hate to say 'i told you so', but I told you so! I have been right so much these days regarding our government policies, I'm getting a sore arm patting myself on the back.
Post a Comment
<< Home