Today I am at College Point Queens. Haven’t been here for quite a while, I enjoyed visiting with old friends again. I’ve got some time off coming so this weekend I’ll be taking it with my lovely wife. I’m looking forward to the extra time at home. I like my job, & I like the people I’m working with. But sometimes it gets to be a little much and some time off is required. This is one such time. Welcome to my world.
Welcome to my world.
This morning I’m casting a wary eye toward the country of Greece, and the results of its recent move towards socialism. As ever, the move to the left has given the world to clear demonstration of what happens when you pay for socialist largesse with other people’s money. What we have going there, is unfortunately what we are going to see ourselves very shortly, because in a large degree we’ve been heading down the same path since 2008.
Greece, whatever else it might be right now, is a classic example of the direct result of applied Keynesian economic theory.
The socialists can’t blame greece’s troubles on military expenditures, given that with the exception of World War 2 and before that ancient times, Greece has never been involved in anything serious militarily speaking. It can’t be blamed on low tax rates given that tax rates thete, particularly on the upper levels of income are astronomical to the point of making American leftists jealous.
In fact, the Socialists had everything their way, implemented every wet dream that socialists usually have,and it failed, quite predictably.
The central government of Greece is now threatening to remove itself from the Euro, and the EU. It all candor, that’s probably the best news the EU is had for some time now. Instead of trying to bail Greece out, they should let it fall over. Stupidity should be painful. Let Greece and its economic failure stand as the ultimate repudiation of Keynesian theory.
Want another example? Fine …let’s pick something a little bit closer to home. Puerto Rico.
Puerto Rico’s problems are large and interdependent, which makes solving them a complex and difficult task. Tourism is down, employment is low, poverty is high, and the island has suffered through the economic pain of falling home values, rising oil prices, and overall decreased competitiveness.
Employment stands out as a terrible problem: Only 40 percent of adults are working or looking for work (compared to 63 percent across the U.S.). Relative to local incomes, federal minimum wages and welfare benefits are pretty high (Puerto Rico follows federal law), which means companies hire less because of burdensome costs, and workers lack incentive to work, since they know that welfare benefits can provide similar income. Without more jobs available, those who do want to work struggle to find employment and often head to the mainland—contributing to nearly a decade of population loss.
And that’s pretty much the state of Greece finds itself in these days. As well as New York State. California, Massachusetts, Maryland, you get the idea. In other words just about every place the left runs things.
The left is forever pointing at the unsustainability of our current energy situation. Unsustainable?
Well, OK….
But when they’ve got proof in front of them such as Greece and Puerto Rico that the Keynesian driven welfare state is unsustainable, they ignore it and go “all in” any way.
Apparently they figure nobody will notice. And in so far as our mainstream lap dog press is concerned, they are correct. But increasingly we are seeing people coming to their senses, I’ll be in a little late. Let’s just hope it’s not too late.
And down the road I go. I’ll see you tomorrow.
