Europe has a bleak future because they don’t want austerity

The medicine for the sickness of spending is real budget cuts but no one in liberal europe wants to hear that. Sadly we are on the same road in the USA.

Liberals (like my blogger opponent “the Outlier” and others) love to say that austerity has been tried in Europe and it doesn’t work but the truth is that tax increases have been put in place but very few real cuts in spending.

I wrote a detailed blog post yesterday, showing that European governments have been very reluctant to restrain the burden of government spending.

Part of the problem is that the debate in Europe is a no-win exercise, pitting proponents of higher taxes (which is largely how Europe’s political elite defines “austerity”) against proponents of higher spending (notwithstanding a long track record of failure, the Keynesians have come out of woodwork and are claiming that bigger government stimulates “growth”).

With these terrible choices, no wonder the continent has such a bleak future.

Here’s a recent appearance on Fox Business News, where I discuss these topics.

I explain that Europe can grow and prosper, but only if politicians are willing to reduce the burden of government spending and lower tax rates.

But don’t hold your breath waiting for that to happen.

P.S. Americans shouldn’t get cocky. Our long-term fiscal outlook is equally grim. We can avoid a crisis if entitlement programs are reformed, but that obviously isn’t going to happen anytime soon.

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