The country of Greece is on the verge of bankruptcy; Spain has 30+% unemployment, Portugal has 25%, France has at least 20%, Italy 20+% unemployment … not to mention Germany and the UK.
For some readers, this large % of unemployed people is alarming, but when you consider how much the state is having to pay in unemployment to 30% of their work force…. its very scary.
Even if Greece gets the bailout money – this socialized society has become incapable of changing, thus the expensive welfare system will remain expensive.
They can restructure their debt, but if they can’t lower it/pay it off then the bailout will serve only as a tiny band aid to a massive gushing wound … in a word, Greece is “fucked.”
A nation going bankrupt is going to make Lehman Brother’s bankruptcy look like a failed mom and pop barber shop … the global economic ramifications, esp on the European Union is too scary to consider…
A strong argument can be made that the socialized societies of each of the countries listed above have made the people weak and soft, i.e. free schools, free health care, generous welfare systems, five, six, eight week annual paid vacations (gov’t employees) get eight week annual paid vacation in France…. if someone gets fired in France they still get at least 80% of their salary for one year (paid by the government) … then it goes to 60%.
I know of friends of friends who have been unemployed for 3 years because they cannot find “management” jobs, and they refuse to accept a lower level job. They earn more being unemployed than they would by working.
Although I used the word “free” to define the social welfare system in europe… it’s not free.
Companies/employers as well as employees pay an incredible % of tax …
This cushy welfare net has created a generation of people who “expect” rather than “earn” to deserve, which in my opinion has created “soft” un-driven societies in each country.
How does it all change? I dont want to alarm people but review the harbinger to first two world wars … esp. the 2nd one.
In my opinion, it is going to come down to strong fiscal – conservative leadership and clear communication with the people.
Someone is going to have to inform Europe that the party is over … now we they need to go back to work.
This is not a positive blog, but it is leading into tomorrow’s theme – something I feel strongly about: being accountable for our own actions.