THE FINANCIAL PROBLEMS IN EU COUNTRIES

Why are countries such as Greece, Spain, Portugal, and others having financial problems due to excessive public debt? The main reason that EU countries are having problems is due to their liberal socialist forms of government. These governments try to provide cradle-to-grave security and medical care for all citizens, as well as other benefits. The people in these countries come to expect all of these benefits that run up the public debt. When hard times come, tax revenues drop. Also, in some of these countries, unions have gained great political power and can mobilize large groups of protesters against any government attempt to cut benefits or pay. As the public debt grows, the government sells more bonds to cover outlays. Then the interest tab on the bonds adds to the government's periodic outlays required, further adding to financial difficulties. Finally, these governments are forced to apply so-called "austerity measures". This causes even more problems and can cause a severe deflationary process in motion which is very difficult to stop. What can we learn from this? We need to resist liberal socialistic policies and try as Americans to be as self-sufficient as possible. Lets get our public debt paid down!