Watching the slow-motion collapse of the EU, the American people should learn a vital lesson: You can’t spend your way to prosperity, and the lavish promises of the never-ending welfare state can’t be kept. – IBD Editorials
From IBD Editorials
If the U.S. is smart, it will learn something from the EU’s debacle.
… the IMF boosted the bailout fund for Europe another $430 billion and just weeks after the 25 nations of the EU signed a “Pact for Budget Discipline” requiring members to cap spending, slash deficits and shrink the size of government.
Worse still, just like President Barack Obama, Hollande wants to sock high-income French with a 75% income tax rate.
If Hollande thinks this will serve as a model for the rest of the EU, he may want to check his own country’s recent history. Former President Francois Mitterrand, also a socialist, tried to spend and tax his way to socialist nirvana back in 1981 and 1982. The economy nearly collapsed as investment fled overseas.
Today, we have $16 trillion in debt, which is more than 100% of our GDP. Thanks to Obama’s spending, which might make even Hollande blush, we’re adding debt at a rate of more than $1 trillion a year.
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