Has anyone noticed that the problem in Europe is with governments, not the private sector? Has anyone pointed this out? Not that I have seen. Economies are weak but not in recession, certainly not in depression. It’s nations that are in virtual bankruptcy, not industry.
Bad planning, embezzlement, inefficiency, and over spending at a corporation will put the company out of business. It creates a hardship, but only for the people who worked there and only until they find another job. The process eliminates a poorly acting member of the economy and acts as a discipline and incentive for other members of the private sector to do better. But when bad planning, corruption, inefficiency and over spending occur in a government, the government doesn’t go out of business, it increases taxes to pay for continuation of the same destructive pattern. There is very little discipline to curb over spending in a democracy because the people vote for the candidate that promises the most and delivers the most of those very things that are the cause of the insolvency.
The problem is simple, too much government spending. The solution is also simple; it’s just not palatable. Churchill said it well with his inimitable wit, “Democracy is the worst form of government,…except all others”.