Europe P-I-G-S Debt, America’s spending under Bush and Obama at the origin of a Libertarian Revival: Blessings in Disguise!

Posted on September 2, 2010 by

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In a TV interview on Feb. 5, 1976, Prime Minister Thatcher said, “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”

 

After the Greek Debt crisis, the whole world turned its attention to sovereign debt, government budgets and fiscal issues.  A small nation threatened the economic stability of an entire continent and perhaps even the whole world.  As a result of the Greece financial turmoil, european governments started to take a serious look at their policies and are now forcefully having to slash their spending.  The bad news is that instead of making more significant cuts, some of them have resorted to raising taxes, always a bad idea but it’s even worse while climbing out of a global recession.  The good news is that even socialist political party leaders are now more inclined than ever to support budget cuts and more fiscal responsibility.  The people have spoken! People around the world are saying “enough with socialist programs that not only will hurt our future but also our kids future,  what our governments borrow and waste today, our children will have to pay for tomorrow”.

In America, the result of big government policies by presidents Bush and Obama have led to a libertarian revival!  Could the Tea Party Movement become a serious threat to the 2 party establishment?  Both Republicans and Democrats have failed America with socialist policies that have led to unsustainable debt levels.  For the first time in decades, Americans young and old are revolting for the sake of future generations.

Quick Fact:  Margaret Thatcher in England and Ronald Reagan in the US both endorsed policies of low taxation and of lesser government intervention.  Reagan’s policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment and innovation, which would then lead to increased economic growth, higher employment and wages.  Some economists, such as Nobel Prize winners Milton Friedman and Robert A. Mundell, argue that Reagan’s tax policies invigorated America’s economy and contributed to the economic boom of the 1990s.  Despite popular belief that the economic boom of the second half of the 90’s was a result of President Bill Clinton’s policies, it was innovation (specifically in the technology sector) that led to the abundance enjoyed during that decade.

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