The Economic Incompetence Of The Political Class
Forbes
Charles W. Kadlec,
12.06.10, 3:00 PM ET
The sovereign debt crisis now threatening Europe, as well as major American states and cities, discloses the sheer incompetence of a political class that has over-promised, under-delivered and squandered vast amounts of their citizens' wealth.
Greece, Ireland, Spain, Portugal, California, Illinois, Los Angeles and Chicago are simply the poster children for what happens when elected officials engage in reckless and irresponsible management of their economies, their banking system or their respective government's public finances.
Greece's debt stands at 144% of its gross domestic product, the highest in Europe. Ireland's deficit is 98% of GDP, due in large measure to the liabilities it assumed when it bailed out the Irish banking system. The just-announced European loan of 50 billion euros to Ireland is equal to nearly 50% of its GDP. Within the next year, Italy will have to borrow 20% of its GDP just to refinance its maturing debt.
California's budget deficit has soared to $25 billion, or more than 25% of total spending. And, according to a recent study, the City of Chicago's unfunded pension liabilities total $45 billion, or more than $40,000 per household.
(More here.)
Charles W. Kadlec,
12.06.10, 3:00 PM ET
The sovereign debt crisis now threatening Europe, as well as major American states and cities, discloses the sheer incompetence of a political class that has over-promised, under-delivered and squandered vast amounts of their citizens' wealth.
Greece, Ireland, Spain, Portugal, California, Illinois, Los Angeles and Chicago are simply the poster children for what happens when elected officials engage in reckless and irresponsible management of their economies, their banking system or their respective government's public finances.
Greece's debt stands at 144% of its gross domestic product, the highest in Europe. Ireland's deficit is 98% of GDP, due in large measure to the liabilities it assumed when it bailed out the Irish banking system. The just-announced European loan of 50 billion euros to Ireland is equal to nearly 50% of its GDP. Within the next year, Italy will have to borrow 20% of its GDP just to refinance its maturing debt.
California's budget deficit has soared to $25 billion, or more than 25% of total spending. And, according to a recent study, the City of Chicago's unfunded pension liabilities total $45 billion, or more than $40,000 per household.
(More here.)
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2 Comments:
Amen Brother Kadlec!
well, kudos to Vox Verax for publishing something worthy of the truth. Kadlec's opinion is a far departure from the constant whining we read on VV from Paul Krugman clamoring for more government spending, more debt, more taxation. It's nice to read that - boy - it looks like those benevolent government types can be just as greedy as the Gordon Gecko's of Wall Street racking up the wealth of a nation and pissing it away knowing they can just raise the taxes to keep funding the largesse and, well, the hell with the consequences as long as I get re-elected.
How did Kadlec put it: "This can be attributed in part to a naïve assumption by the electorate that those in government, freed from the profit motive, could be trusted to do what was "right" for the community as a whole. Instead, what we now can see is that elected officials, following a power motive, can be as greedy and irresponsible as anyone in the private sector."
Amen!! I have been saying for years and years that government greed is the most insidious form of greed and to what end - the almight re-election.
Good job, VV, for posting this. I will be posting the link on my Facebook page to share with the non-VV reading world!
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