Watching TV this morning, we hear the news that Greek protesters they continue to occupy the streets and the protests have become extremely violent. Will it be different in the US?
Greek government votes on “austerity measures”. In fact, they were equaled by the net present value tables combined with the lack of economic growth.
The The jig is ready.
The Greek economy is petty. The city of Los Angeles is characterized by greater economic activity. But lessons Greece are gigantic. Here are the two main lessons.
1. Without economic growth you cannot have a social safety net.
2. Governments create nothing and are not productive.
That’s really all you need to know as you refocus and think about what needs to be done for the American economy.
The US has a lot little time left in the hourglass. Since the creation of the government safety net in the 1930s (significantly expanded since 1965), we have enjoyed the benefits of demography. The baby boomers populated the labor force and economy needed to create the things that make life possible.
Now the boomers are retiring. They will be less productive and start using government funds. Ultimately, when they begin to die, they will be a significant drain on medical resources because most medical care occurs in the last two years of life.
That’s why things like Obamacare will do that never work. Socialized medicine is not budget-friendly and there is not enough production to handle all the ingredients it needs. A competitive black market will develop in which only those who have enough money to afford medical care will receive it on time. The rest of the impoverished juices will be stuck in the queue.
There have been several mini-Greek events in the US. The occupation of the Wisconsin state capitol comes to mind. Why were they protesting?
No more being in government benefit.
Government employees who are unionized area obstacle on the way for the economic vitality of the United States. They produce nothing. They cause headaches. Instead of smoothing the path for entrepreneurs and companies, they clutter it with paperwork and regulations. We must reduce the size and scope of America’s regulatory behemoth. It is on the path of economic growth.
They want to “Occupy Wall Street.” works– the President wants worksand 20% of the unemployed in this country want a job. However, the solutions they propose destroy jobs, not create them.
The social safety net and job creation are interconnected. Minor tweaks around the edges won’t facilitate. Existing programs and costs must be addressed and reframed so that the economic interests of government are aligned with the economic interests of citizens.
We are in a situation that, from a socialist’s perspective, requires quite radical changes. But if you are a capitalist/entrepreneur, the changes we need to make are not that gigantic. It’s more like the normal course of everyday existence.
The Greeks are marching. No doubt their relatives in the US, the public sector unions and socialists, will take to the streets here. They will make a lot of noise and cause a lot of fear. The truth is we can’t afford them anymore.
Such things are a thing of the past, as are buggy whip manufacturers.
Today’s links:
Chicago Angels of Hyde Park Gradebeam portfolio company is bought by Textura. The entrepreneurial ecosystem has another success story in Chicago.
Letter to Republican candidates.
Private university makes successful start-ups.
Tips for action miniature food company.
Comparing some proposals for the agricultural bill.
The largest in the world garage sale he’s doing well. ($EBAY)
Position limits.
What are VCs? vision.
How build entrepreneurship ecosystem.
We have little weather here yesterday.
Groupon moves back its valuation. No problem. Since its establishment, the company has come a long way.
Abbot’s Laboratories ($ABT) Is decomposition for two companies.
Past CPI number is the first to provide an argument to inflationists. We have printed so much cash around the world that it is demanding for many economists not to imagine massive inflation. The gold worms are elated. ($GLD, $GC_F)
US birth rate stables. This is actually quite gigantic news. Demographics play a immense role in economic growth. Without a steady supply of teenage people, growth stalls. Ask the Ohio Shakers.
Algae as fuel.
John Ransom | Create your badge
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