In Greece, the sky is falling:
“No one warned us,” she said. “I have no hope, not for myself, not for my children, and I am only 50.” But she said some things still make her laugh. “I can’t get it into my mind that my life is such a mess,” she said. “It’s a joke.”
When you’re raised to believe the government provides everything, it’s disastrous to realize that a government cannot.
Beyond the public-sector wage cuts, in recent months the government has also imposed a “solidarity tax” ranging from 1 to 4 percent of income on all workers and an additional tax on self-employed workers, who make up the bulk of the economy. It has also raised its value-added taxon many goods and services, including food, to 23 percent from 13 percent.
The economy is flagging, and it is not uncommon for even private-sector workers to see pay cuts of 30 percent or more, sometimes in exchange for a reduction in working hours.
The tax hike most bothersome to Greeks is the new property tax.
Most worrisome, the headline in the NYT: Worried Greeks Fear Collapse of Middle Class Welfare State
Don’t liberals get a clue from this? It’s not sustainable. Never has been. Never will be. Mark Steyn:
Greece is reported to be within weeks if not days of default. There are two likely outcomes to this scenario: 1) Greece will default. 2) Germany and the Eurocrats will decide that default would be too embarrassing for the EU’s pretentions and will throw whatever sum of money is necessary into the great sucking maw of toxic ouzo to stave it off a while longer.
But Option Two doesn’t alter the underlying reality — that, if words have any meaning, Greece is insolvent, and given its rapidly aging population (100 grandparents have 42 grandchildren) is unlikely to be non-insolvent under any conceivable scenario, no matter how tightly German taxpayers are squeezed to pay for it. By the same measure, so are many other Western nations
We face the same fate if we cannot cut the size and scope of government and entitlements. Kinda wild, ain’t it, that we could follow Greece down the black hole of welfare? And we thought we weren’t a socialist nation. Guess we’ve spent like one, no?
H/t: Hot Air headlines
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