Friday, 8 April 2011

Socialist Economics

I wonder if anyone else has noticed that the countries all now in the bankruptcy court of the EU Monetary Commission, are all governed by 'socialist' politicians? Greece, Italy, Portugal, Spain and Ireland (to a lesser extent) are all governed by socialists of varying shades of Pink to Red. The Irish government banked on the EU subsidies and, unfortunately for the populace, chose to spend furiously on all manner of social handouts and job creation on a round of spend it as fast as you can boys exercises. Greece has one of the most generous social security packages in Europe, with retirement at an age most people are just getting to the top of their careers. Italy hasn't managed to make up its mind about anything much except to play the old Roman game of throwing money to the 'plebians' - most of which winds up in the hands of the Mafia Bosses.

Spain lurched into socialism around the same time Britain elected that disaster Blair/Brown and with much the same outcome. Spend, spend, spend some more. When you run out, borrow, borrow again and then start printing money (This is what Wilson and Callaghan did in the 1970s) and then blame the rich for not paying enough. At least the UK is still afloat - just -but I have no great hopes of sense or even fiscal responsibility prevailing for long. As soon as the socialists get their hands on power again, the country will plunge even further into debt. Portugal is currently being bailed out by the EU Fund and Spain is in the waiting room so this will cost the more sensible peoples in Europe a lot before it gets any better.

Unfortunately it looks as if the only way to prevent us all winding up as economic basket cases is either to remove control of spending and borrowing from individual governments, but that is likely to be as popular with voters as the proverbial Pole Cat walking into a cocktail party. Alternatively, as Mrs Merkel has proposed (Interestingly she grew up in the former Democratic Republic of Germany - the 'Socialist Paradise' that needed the Stasi to spy on everyone and a wall to stop its citizens from running away from it, and has more fiscal nous in her little finger than the majority of Chancellors of the Exchequer of the last several UK Governments) that all national borrowing should be approved by the Monetary Committee of the EU or should be limited to a percentage of GNP.

Far to sensible I suspect for all socialists who think the money in everyone else's Bank Account is theirs to spend ...

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