New York Times columnist Paul Krugman is right about one thing, when he says: “now, with Italy falling off a cliff, it’s hard to see how the euro can survive at all”.
But the rest of his analysis of the crisis in Europe, as well as the causes, is in the realm of pure fantasy… The reality that Krugman refuses to accept is that Europe offers a glimpse of America’s future if it continues down the path of European-style big government. The root of Europe’s financial crisis lies in decades of over-spending and over-borrowing, largely to pay for overgrown and bloated welfare systems, vast public sectors, and incredibly generous pension plans. Europe has a huge entitlements disaster heading its way, with graying electorates unable to sustain the status quo. Added to this has been the disastrous euro experiment, which has created a one-size fits all approach for 17 EU countries, with varying levels of economic advancement. It has been a huge leap into the dark, without a shred of democratic accountability. There is only one path Europe can take if it is to avoid economic meltdown: dramatic cuts in public spending, the dismantling of its welfare states, the removal of crippling taxes and business regulations, the downsizing of the public sector, and a return to self-determination for EU member states. It is Europe’s lack of fiscal responsibility, economic freedom, and national sovereignty, that are at the heart of the current economic crisis, and the United States must do all it can to avoid European-style decline. More here