No matter what you read about the Euro debt crisis these days, you keep getting shocked paragraphs like this one.
What if Europe and the US converged on a set of economic policies that brought out the worst in both – European fiscal austerity combined with a declining share of total income going to workers? Given political realities on both sides of the Atlantic, it is entirely possible.Budget cuts? No kidding, dude. They're hugely in debt. They spent today's money yesterday. It's all gone. You're not going to be able to spend what you've already spent.
So far, the US has avoided the kind of budget cuts that have pushed much of Europe into recession.
How hard is this concept to grasp? What's the disconnect here? It's like these people can't do a simple budget. They must act surprised every time they find their wallets empty, like it's supposed to be some kind of endlessly regenerating magical bag of monies. This is the world of the child, the one where mommy and daddy bring me nommy-noms from somewhere and I eat them. It's pathetic.
Robert Reich, author of the above idiocy and darling of many of my lefty friends, views the sequence of events like this:
What a scathing indictment of our culture where there's no grasp of the concept of borrowing money, even among "educated" people.