Several years ago Greece seemed set to explode. People took to the streets, rioting and protesting the government. The reason was that the Greek government was all but broke and had announced that it would no longer be able to sustain the huge entitlements it was paying to the citizens. Coupled with two years of economic depression, which caused high unemployment and low tax yields, the government was in debt and was literally going to be forced to shut its doors. This was 2010.
Now, the government has recovered thanks to loans and jobs rates slowly climbing. They have yet to deal with their entitlements and are still receiving payment on its bailout. Here is the issue. Five years ago, the EU, lead by Germany urged Greece to lower government spending. These “Austerity” measures, once in place convinced IMF and Europe to provide Greece with a bailout.
Now AP reports
Greece is in negotiations with the International Monetary Fund and European authorities to receive the final 7.2 billion euro ($7.8 billion) installment of its financial bailout. Creditors are demanding that Greece produce credible reforms before releasing the money.
Now, here is what we have to take into consideration. Greece has struggled to keep its head above water. The reason is very simple. The Greeks, having somewhat recovered, voted in a leftist government. Then, making no real change in government spending, they have relied on the bailout.
AP further reported
The country has relied on loans from the international community since 2010. Without more bailout money, Greece could miss two debt payments due to the IMF in May and run out of cash to pay government salaries and pensions.
The problem is that there is no real way to get Greece out of it situation until it cuts off the mad spending that it does. The people are addicted to the freebies the government hands out like crack addicts. This addiction causes them to fail to rationalize. If they were forced on to their own resources and the government would be forced to get out of the way, their standard of living would improve.
But instead, having no hope but in this world and only in the deeds of man, the people vote in the fool who promises him riches. Though this kind of thinking seems so backward, it is so predominate in our age and is driving our economies at best to stagnation. And this is where we come in America.
As we sit here, we have reached a tipping point. Since the thirties, our government has been collecting wealth to distribute it to the needy. This was at first a small percentage of the people. But as the decades have rolled by, more and more people have joined the entitlement programs. These programs have begun to be a sink hole in our economic system. The capital being used to fund other programs or simply not bringing in as much as has been promised to go out, the entire system has been in the red. Now over half of our population is on some form of entitlement.
If this does not change, then we can look to Greece to see our future. The leftist government won in Greece because they promised the slaves more goodies. These entitlements make slaves of men and destroy families. Just look at Greece.