As EU Nears Collapse, Will U.S. Follow Suit? Yes, with Obama 2nd term

April 24, 2012 07:10

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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