Greece is on the verge of financial collapse. Over decades the Greek Socialist created so many entitlements that they could not sustain it. As their entitlements and debt grew, they borrowed money from the European Union in hopes of stabilizing their economy. The European Union provide loans but with strings attached. They wanted the Greek government to cut their expenses through an austerity program. Pensioners were to receive less, taxes raised, government spending to be cut, etc. The Greek government accepted the conditions but then the Greek people revolted against the government. They were unwilling to give anything up to save the nation from financial collapse.
Socialist Prime Minister Tsipras came to power with a promise to renegotiate the debt agreement with the European Union. His government rejected the idea of austerity. He thought that he could negotiate a new agreement without imposing austerity; however, the European Union woke up to the realization that Greece was a money pit. Pouring more money into the nation was useless because Greece was unwilling to put her financial house in order. Without austerity, Greece was just going to sink more and more into debt.
If Greece is dropped from the European Union, expect to see a nation collapse into chaos. There will be shortages of the most essential ideas particularly food. The government will have to start issuing by fiat the old Greek currency, the Drachma. If this occurs, it is already estimated that the Drachma will drop at least 40% in value.
The drop in value creates inflation. Money loses its value and prices rise. What cost 20 drachmas today will cost 28 drachmas tomorrow. Prices will rise for everything. Those Greeks who did not want to give up anything because of their fixed pension incomes will find austerity will be imposed upon them through inflation. The problem is that the inflation could go higher and create economic hardships for all of the Greek people. It will be far worse than the austerity measures wanted by the European Union.
Venezuela, another Socialist paradise, is also on the verge of collapse. There are already shortages of many things from certain food items to medicine because of entitlements. Everybody was to receive free medical care. (Sound familiar?) The expense overwhelmed the government’s ability to pay the medical costs. It is the government that dictates who receives medical care and they have created a mess. People wait months for medical care because of the government bureaucracy. Standard medical equipment such as X-ray machines are breaking down and NOT being repaired or replaced. Doctors have fled the nation by the thousands. The Socialist government’s solution? They blame the United States.
Let’s go further! England’s free health care system has been held up as a model for the USA to emulate. England is also running into financial woes over the cost of the system. Several months ago the head of the English health care system issued a warning to the government. The report said that the system is becoming so costly they will have to mandate a paying system in the future.
Despite these and other examples, there are those who think socialism is the answer. They ignore or deny the realities of what is happening in Greece, Venezuela and other socialist nations. Obama is a socialist who wants the government to become the dominant decision maker in people’s lives. Only the knowledgeable and realistic among the American people understand the fallacy of his thinking. They see the socialist paradises collapsing around the world. Unfortunately, they are a minority. If we don’t turn his nation around economically, we will be the Greece of the future.