Wednesday, June 22, 2011

Solving the debt crisis is easy for the Libs.....

Just take more from the guys who earn it and spend it on their favourite projects saving the world from greedy citizens. After all, that way we all belong to the state and we keep the liberals in charge!

Zakaria: What Greece teaches the U.S. – Global Public Square - Blogs
The situation in Greece highlights for me how different America’s economic crisis is from Europe’s economic crisis.

America’s economic crisis is one that is actually economically soluble but politically very difficult to solve.

If we were to repeal the Bush tax cuts, we'd get $4 trillion of revenue over the next 10 years. If we were to enact Simpson-Bowles, we’d get $1.5 trillion by closing various tax loopholes. With a few simple economic decisions, we can solve America’s budgetary problem.

Now, of course, you have long-term healthcare costs to deal with. That’s a huge problem and I don’t pretend it isn't. But in every other respect you can bring down America’s budget deficit to what would be among the lowest levels of any Western country.

Greece faces a much more fundamental problem. There isn't an easy economic solution.

Greece is simply not going to be able to pay back the loans that it owes. If you do the math, it is inconceivable.

That is what people like Alan Greenspan are pointing out. There’s simply no reasonable set of projections that will get you to a place where Greece is going to be able to pay back its loans.

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