Wednesday, August 22, 2012

Debt Drags Down Europe

A centralized economic policy could never function adequately without political cohesion.

One class of state, which has permitted its residents to get by without doing very much, has created a sub-class of countries depending on wealthier nations, in which the individuals in these countries were committed to doing more with what they have instead of waiting for others to do more for them.

Germany has enjoyed economic growth in exports and production, notwithstanding the global recession which has hit the global economy. Yet even German cannot continue to bail out nations which have done nothing with their time or wealth to get through the rough patches of austerity.

Markets correct, if they are permitted to correct themselves. The shock to economic markets will be very powerful and painful, yet there is no other way, because borrowing and bailouts have created more and more problems, with no relief in sight for anyone.

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