Greece could be a lesson for all of us in America.
The Greek financial system has several key differences from the American financial system. It follows the European model of entitlements. In Greece, people retire a decade earlier than in the United States, peoples’ pensions are much higher, and public sector pay is also much higher. Many industries that are privatized in America have been made public in Greece.
One thing we can all learn is that nothing in this world is free.
People tout cheaper health insurance under this administration’s plan, for example, but actual medical care is still getting more expensive. How do we make up for the difference? We borrow the money. In short, entitlement programs, for the most part, are unsustainable. The government essentially subsidizes goods and services with taxpayer money. Where’s the logic? How can we expect to pay less for a service that is expensive?
Greece’s debt to GDP ratio on the onset of its financial meltdown was 115%. Ours is not as bad, but still quite up there. It is currently hovering around 80%, according to zfacts.com (http://zfacts.com/p/318.html).
This administration, and the last administration, did not seem to understand the value of a dollar, and spent trillions of dollars that we simply do not have. It’s ridiculous to think that this kind of spending methodology is sustainable.
America needs to wake up and realize that we need to work for our goods and services. We are not entitled to anything financial from the government.
Unless we want to end up like Greece and default on all of our debts, our government needs to adopt more sustainable, responsible spending practices on Capitol Hill instead of paying for pork projects to keep their constituents happy.
We saw today, at about three o’clock, how our market reacts to the situation in Greece, which is comparably a tiny economy. Imagine if America defaulted on its debts. To put it in perspective, scares from the protests in Greece made the market drop over 900 points within minutes. Greece is the world’s 27th largest economy. If America were in Greece’s situation, the consequences for the world economy would be dire.
It’s time to wake up America, and learn the lessons that the Greeks are unfortunately learning as I am writing this. Nothing in this world is free, and we are not entitled to have it for anything other than what it is worth.