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The implications for the elections in Europe likely portend what will
happen in the U.S.. A similar revolt against incumbents [will] …sweep Obama…out of office but… the newcomers will be placed in the position of Sarkozy and other European incumbents. They will have to address the insolvency and eventual liquidity issues in similar fashion which will be viewed here as “austerity” or worse, “cruel and unusual” punishment. [So, how likely is that? Not very, because] politicians, by nature, are not courageous animals. Instead we will see more of the same: half-assed attempts to fool the people into believing that something is being done to solve the problems. [So what does the future hold for America?] Words: 631
So says ”Monty Pelerin” (a pseudonym derived from The Monty Pelerin Society) in edited excerpts from his original article* as posted at www.economicnoise.com .
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.
Pelerin goes on to say, in part:
For decades Europe’s economies have been plagued by sub-par growth and that is the cost of socialism, whether socialists want to admit it or not. [As the saying goes:] the problem with socialism is that eventually you run out of other people’s money and that is where many of the countries in Europe find themselves. When that point is reached, at least a partial dismantling of the welfare state must take place. Cuts in programs are what is referred to euphemistically as the “austerity” approach. Realistically, it is the only course for Europe (and the U.S.). Europe is broke (and the U.S. soon will be).
The economic difficulties in Europe are not trivial by any means but they are not that unusual where stagnation has been a way of life for many for several decades. What is new was the political attempt to roll back socialism.
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Too many Europeans have lived in their socialist cocoon for so long that they believe it can continue. To them, the French and Greek elections were just another choice between political philosophies:
- the incumbents recognized the need to lower spending because there is no more money.
- their opponents ran on the platform that the fantasy can continue.
To the extent that voters believed that they were being asked to suffer when they there is no need to change course, the choice was simple — vote out the incumbents who are advocating lowering their living standards.
At least a couple of generations in Europe know nothing other than cradle-to-grave socialism. For them, it is the way the world works and has always worked. They have planned their lives on this worldview and are entitled to the benefits they were promised. If electing politicians more socialistic than the recent ones is perceived as the way to maintain these benefits, then they want more socialism rather than less.
Unfortunately the security they thought could be provided by government is no more. Continuing the current condition is not possible. THERE IS NO MORE MONEY! And without money, government can provide nothing.
The American Connection
I don’t see Romney [or Obama, should he get re-elected,] and other newly elected politicians willing to commit the political suicide that we have just witnessed in Europe. Politicians, by nature, are not courageous animals. Instead we will see the usual half-assed attempts to fool the people into believing that something is being done to solve the problems.
Conclusion
Eventually, it will be too late to pretend and extend and we will be in Europe’s position where it must be done. That is apt to make the election after 2012 look as socialistic as last week’s European elections.
*http://www.economicnoise.com/2012/05/07/european-elections-harbinger-of-us-elections/
Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
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