Ah, the glory that was Greece! Too bad the modern country is anything but. The nation-state of Greece is going broke, and going broke spectacularly.
And, dare I say it, instructively?
Everybody’s blaming everybody else, there. But the simple truth of the matter is that the politicians of Greece — both socialist and “conservative” — enticed citizens to go along with a sustained binge of spending, spending far beyond revenues.
And then the government lied to European Union HQ in Brussels about how much it was spending over revenues.
And, you guessed it, Greece continued to borrow even more.
Yes, public spending in Greece was more out-of-control than government spending here in America. And that’s why it’s instructive. What is happening right now to Greece is happening elsewhere in Europe — Italy, Spain, Portugal — and is on pace to happen to us, too.
Greece does have one option the good ol’ US of A doesn’t have: It can go begging to the European Union. So far, saner heads in the EU are saying “no,” but that may not last.
While we don’t have that option, Greece lacks ours: With the Euro as its standard, it’s constrained from the monetary fiddling that American leaders are tempted with. Inflation. Hyperinflation.
When things get worse here, we’ll hear talk of huge tax hikes, confiscations, and sovereign default.
But also expect a lot of what Greek politicians did: Lying.
Inglorious, eh?
This is Common Sense. I’m Paul Jacob.