Today, Reuters reported an explosion in Naples, Italy. The target of the blast was the office of Equitalia, which is a tax agency. Last year, Greek riots were taking place in Athens due to the fear of government entitlements drying up. And in 2010, who could forget the hissy fit riots by the French because of pension reform?
Why are these demonstrations turning ugly?
European nations that have embraced the Keynesian model are finding that the baby boomer generations will require more than what the government can take in and provide for them. Europe is already taxed to the gills and the population is highly dependent on entitlements. Europeans believe government owes them.
So what happens when revenues cannot meet the demands of the expenditures? With taxes already through the roof, the only answer is to borrow money.
Of course we all know that there comes a time when the debt has to be paid. The thing that makes this difficult is, the same conditions that caused the Euro governments to go into debt in the first place are still present. If a population cannot bear to absorb more taxes, the only real option left is to cut spending. But whenever any of these governments try to reform programs that are becoming increasingly expensive, the population goes into a rage. They take to the streets, damage is incurred, people get hurt…. all because the economy is wrapped up into a large government model with no opportunity for growth.
So when an article makes the claim that Keynesian economics leads to violence, we can have a better understanding of why. Getting people used to getting free stuff that they do not have to pay for and then taking it away, only leads to anger and rage. Giving men a fish to eat every meal but not teaching him how to catch it himself, only leads to desperation and violence.
This is what the current group of Democrats in this country have embraced as their economic model. Take away, give away, and pay for it by taxing the producers so they cannot produce enough to maintain. Then, borrow like hell in the process to make up the shortfalls.
It’s easy to see why trying to import Euro economics is foolish and stupid. America has always been best when it exports its ideas to Europe, and Europe has always been at its best, when it imports them.