CAN EUROPE GROW OUT OF DEBT?
The big story in Europe today is “Growth.” Paying off the debt is important, but that is bringing a new problem: Recession.
In order not to create new debt, you must have austerity: That is, not spend too much.
When a country stops spending and has little else to support its economy, it starts to sink.
The European economies are mostly “socialist” economies; governments tax and spend, and business in every form, simply pay their owners, their workers and their taxes.
There is no place for growth.
The European governments, in spite of their professed allegiance to honesty and integrity, are the most corrupt governments in the world.
However, the corruption is well hidden. In most less sophisticated countries, see Eastern Europe, the corruption is out in the open where every citizen can see it.
But in Western Europe, the corruption is extremely complex and woven into the fine embroidery of the sophisticated culture. But, it is there. You must simply examine the tedious legal landscape, see who is elected time after time, what new laws are passed, who benefits, who loses, and, voila!, you will see that hidden corruption.
At this time in history, financial institutions and politicians are holding each other’s hands and putting the government’s taxes into each other’s pockets.
In addition, the political power groups, Merkel, Sarkozy, etc. and the IMF are telling the people of Europe: “You will go to Hell in a hand basket” if you don’t pay back our friends the bankers!
“You must pay more taxes, take less vacations and retire only when you’re ready to die!”
This is fine for the banks but it is horrible for the European economies. These economies are rapidly dying, if they do not have a market for their exports.
In order to counter the effect of the “Austerity” which is another word for the expression “Pay the Bank!” the new political idea is “Growth.”
“We must grow our economies, so that people can pay their taxes,” say the politicians.
“Growth” is the new panacea.
But, in order to grow economically, you must have new businesses, which require investors and ideas, and a precious commodity that no longer
exists: Skilled Labour.
“Send everybody to school!” cry the politicos. “We must have skilled labor to have skilled manufacturing to make such skillful products that even the Chinese will buy from us!”
Unfortunately for this trajectory, Europe is enmeshed with social issues that make training students a formidable task.
Many new Europeans from other countries cannot speak the languages of their new countries.
In addition, the schools are old and under-funded. Most countries in Europe are having a hard job simply teaching new comers their new language. They must also teach them new value system.
The original Europeans are growing old. They are too old to learn and too tired to work harder to pay more taxes.
Their offspring are rarities. Europe has an aging and dying population. The newcomers are incapable of supporting the indigenous population. Many are incapable of supporting themselves. Many have come to Europe to seek the support of the European system.
This is a reality which must be faced.
“Growth” is the last thing on the minds of the Europeans.
However, unless Europe grows, it will sink.
And as it sinks the heavy chain around its neck will be the EU apparatus; filled with bureaucrats, repetitive legalizations, rules, demands, and thousands of ways to halt growth.
The concept of EUROPE and GROWTH is self negating.
There can be no “Growth” in Europe as it is today.a
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