Wednesday, September 28, 2011

People tell me that "Greece is dead", like Hollywood (in Buble's song).

The New York Times ran a story about the extreme hardships in Greece with the new property taxes, delayed or even rescinded or at least reduced public employee salaries, all presumably to retain the integrity of the global “capitalist” system. There are many perspectives, such as this

Financial planners tell me that Greece is gone. A default is expected. The Left will demand repudiation.

But the underlying problem is partly demographic. Governments cannot forever expand their welfare states without new workers to pay for people who are retired longer and expect infinite medical care. The same thing will happen here.

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