Greece: Big Government at its Best
The Greek government is broke. No big news there, as it’s been a top international headline for months. Now there are major strikes planned for this week to protest the massive budget cuts required in order to right the sinking Greek ship of state. Who’s striking?
Government employees.
Clue: Government does not create wealth. Government siphons wealth off of its productive citizens and channels that money to people who don’t produce anything tangible. Some provide valuable services, e.g., the military, police, firemen, and (some) teachers. But none of the government’s employees actually produces anything that generates revenue. So, when the government is broke, there are only two options: increase taxes on the citizens who are productive, or cut pay for those who are not. In the case of Greece, there aren’t enough of the former to support the latter. Here in America we are moving all to quickly toward the same situation. There’s a lesson here somewhere.