Watching television this morning we hear the news that Greek protestors still occupy the streets and protests have turned extremely violent. Will it be different in the US?
The Greek government is voting on “austerity measures”. What’s really happening is that the net present value tables combined with no economic growth have caught up to them.
The jig is up.
1. Without economic growth, you cannot have a social safety net.
2. Governments create nothing, and are not productive.
That’s really all you need to know when you refocus and think about what needs to be done for the US economy.
The US has very little time left in the hourglass. Since the inception of a government safety net in the 1930's (significantly ramped up since 1965), we have had the benefit of demographics. Baby boomers populated the workforce and the economy needed to create stuff for them to live.
Now, the boomers are retiring. They are going to be less productive, and will start to draw on the government resources. Eventually, as they begin to die, they will be a significant drain on medical resources since most of your medical care comes in the last two years of your life.
That’s why things like Obamacare will never work. Socialized medicine isn’t cheap, and it doesn’t have enough production to service all the constituents that need it. What will develop is a competitive black market where only ones with enough money to afford medical care will get it in time. The rest of the poor saps will be stuck in line.
We have had some mini-Grecian events in the US. The occupation of the Wisconsin state capital comes to mind. What were they protesting?
The end of being on the government dole.