Lessons For America From the European Fiscal Meltdown

Another fine econ 101 video from the Center for Freedom and Prosperity.   This video exlores the lessons that America can learn from the current European fiscal and debt crisis.

The lessons are very simple:

1.  Higher taxes lead to higher government expenditure and not reduction of government debt.

2.  A value added tax is a recipe for run-away government expenditure.

3.   A welfare state breeds dependency.

4.   Fiscal reform and reduction of government expenditure is impossible once more people are living off the government than are paying taxes to support the government.

5.   Bailouts do not work.

 

The West has been on a very long drunken sailor binge when it comes to government expenditure.  Unfortunately we get to live through the very painful hangover aftermath.

 

5 Responses to Lessons For America From the European Fiscal Meltdown

  • Let a candidate take those exact 5 points and build a platform of specifics for election 2012, using campaign funds to hire this young student with a clear, studied vision as advisor in chief. Why let history repeat itself.

    The person talking to the curtains in the opening video, who was pooling (how gross!)guns, religion, and antipathy as a result of frustration with government, isn’t on a path to avoid crippling what’s left of the human spirit.

    While the OWS are still enmass, wouldn’t it be great for them to have the benefit of this 7:05 minute lesson in Econ 101 for America?

  • It is less complicated.

    When government (taxes and spending) grows faster than GDP there will be a disaster.

    PM: It won’t work. They have been taught what to think (brainwashed), not how to think. While we have them all in one place, . . .

    Bray for peace!

  • Wow !!
    She had my vote well before the economics started ;-)

    Seems that’s a lesson that most western governments need to take on board, but are turning a blind eye to.

  • 1. No
    2. No
    3. No
    4. No
    5. No

  • Art,

    Care to elaborate?

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