July 6, 2015

Greece Faces Hard Economic Times of Its Own Making

Ah, the innocence of short-term groupthink. Sixty-one percent of Greeks voted Sunday to resist the economic demands of international creditors. In doing so, the Greeks are strumming their Bouzoukis right into a steaming pile of economic mess. How could they not? International creditors are telling the country to cut its spending, telling the country how to spend its money. And the birthplace of democracy has figured out it can vote itself into regulatory tyranny and a death by entitlement spending. A vote against accepting the repayment plan is a vote for Greece’s bull-headed independence, whatever the consequences. Well, the consequences are dire for the country with the economic clout of Connecticut, as there’s a good chance it will be booted from the Eurozone. Greece’s pile of rubble for an economy will disintegrate even further because it may try to resurrect its own currency, the drachma. Cue the inflation, cold creditors and hard times. While Greece’s plight sounds like the international version of a shopper with five-too-many credit cards, America should not be quick to laugh. Our entitlement spending is increasing our $18 trillion federal debt. Meanwhile, the Greek government plans on going back to the rest of Europe to ask for another bailout, a move that sounds like it will go over like a lead balloon.

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