Thursday, March 28, AD 2024 3:23pm

Lessons For America From the European Fiscal Meltdown

Another fine econ 101 video from the Center for Freedom and Prosperity.   This video exlores the lessons that America can learn from the current European fiscal and debt crisis.

The lessons are very simple:

1.  Higher taxes lead to higher government expenditure and not reduction of government debt.

2.  A value added tax is a recipe for run-away government expenditure.

3.   A welfare state breeds dependency.

4.   Fiscal reform and reduction of government expenditure is impossible once more people are living off the government than are paying taxes to support the government.

5.   Bailouts do not work.

 

The West has been on a very long drunken sailor binge when it comes to government expenditure.  Unfortunately we get to live through the very painful hangover aftermath.

 

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Patricia M.
Patricia M.
Monday, November 21, AD 2011 1:23pm

Let a candidate take those exact 5 points and build a platform of specifics for election 2012, using campaign funds to hire this young student with a clear, studied vision as advisor in chief. Why let history repeat itself.

The person talking to the curtains in the opening video, who was pooling (how gross!)guns, religion, and antipathy as a result of frustration with government, isn’t on a path to avoid crippling what’s left of the human spirit.

While the OWS are still enmass, wouldn’t it be great for them to have the benefit of this 7:05 minute lesson in Econ 101 for America?

T. Shaw
T. Shaw
Monday, November 21, AD 2011 10:38pm

It is less complicated.

When government (taxes and spending) grows faster than GDP there will be a disaster.

PM: It won’t work. They have been taught what to think (brainwashed), not how to think. While we have them all in one place, . . .

Bray for peace!

Don the Kiwi
Don the Kiwi
Tuesday, November 22, AD 2011 3:07am

Wow !!
She had my vote well before the economics started 😉

Seems that’s a lesson that most western governments need to take on board, but are turning a blind eye to.

Art Deco
Art Deco
Tuesday, November 22, AD 2011 4:25am

1. No
2. No
3. No
4. No
5. No

Phillip
Phillip
Tuesday, November 22, AD 2011 5:06am

Art,

Care to elaborate?

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