Ballooning Deficits in Greece Foreshadowing Future for the U.S.?

The United States should learn a lesson from Greece’s economic downturn. Their ballooning deficits are not too different from our very own. U.S. federal debt as a percentage of GDP came out to an astounding 94%, not too far behind Greece with a debt that has reached over 112% of GDP. Greece has been engaging in massive spending cuts and enormous tax hikes for sales, tobacco, luxury autos, fuel, a VAT, and any other feasible manner they can pinch money out of their citizens' pockets to pay for their irresponsible policies. These taxes will halt investment and prolong the stunted growth of the nation.

The United States will likely face these same consequences if spending isn’t curbed by the federal government. Passing healthcare would be one step in the wrong direction toward a Greek fiasco in the U.S. Paying for massive bailouts doesn’t assist in diminishing public debt. Spending billions on stimulus bills that have no proven record to pull the economy out of a recession only serves to increase the deficit and to push us closer toward the collapse of our economy. We must curtail spending increases soon, before we end up selling our states to Canada to pay off the debt (Greece thinks it’s a viable option).

(Image by Chip Bok at reason.com)

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Greece needs to get their fiscal house in order by limiting spending to to population growth plus inflation. Simply bailing the country out merely prolongs necessary changes and cuts that must be made.
>> Jmoser March 12, 2010 5:35 pm

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