Running Out of Other People's Money

Margaret Thatcher famously said that "the problem with Socialism is that eventually you run out of other people's money".  She didn't say what happens then.  Greece gives us an idea.

Private businesses have closed down in the thousands. Unemployment stands at a record 25 percent, with more than half of Greece's young people out of work. Caught between plunging incomes and ever increasing taxes, families are finding it hard to make ends meet. Higher heating fuel prices have meant many apartment tenants have opted not to buy heating fuel this year. Instead, they'll make do with blankets, gas heaters and firewood to get through the winter. Lines at soup kitchens have grown longer.

But at least Greeks are pulling together in hard times, right?

Life in Athens is often punctuated by demonstrations big and small, sometimes on a daily basis. Rows of shuttered shops stand between the restaurants that have managed to stay open. Vigilantes roam inner city neighborhoods, vowing to "clean up" what they claim the demoralized police have failed to do. Right-wing extremists beat migrants, anarchists beat the right-wing thugs and desperate local residents quietly cheer one side or the other as society grows increasingly polarized.

.....

After battering his Egyptian assistant, the mob turned on Mr Abdulbasset, who had defied police to keep his shop open...  The riot police watched on but did not intervene

The authorities will take care of all this vigilante justice, right?

Greece's sclerotic justice system has been hit by a protracted strike that has left courts only functioning for an hour a day as judges and prosecutors protest salary cuts.

At least if they get beat up, Greeks still have "universal", government-provided medicine, right?

A sign taped to a wall in an Athens hospital appealed for civility from patients. "The doctors on duty have been unpaid since May," it read, "Please respect their work."
.....
"When the pharmacies are closed and I can't get my insulin, which is my life for me, what do I do? ... How can we survive?" asked Voula Hasiotou, a member of an association of diabetics who turned out for the rally.

Keep all this in mind when politicians tell you we need to keep borrowing over $1 Trillion per year, as we have during all four years of Pres Obama's first term. 

Think this can't happen in the US?  On the contrary, there's no reason why it can't.  And if we let it happen, it'll be far worse.  The US and EU bailed Greece out.  Our population is 31x bigger than that of Greece, and our economy is the biggest in history.  No one is big enough to bail us out.

Here's one last quote from the AP article on Greece.

"Our society is on a razor's edge," Public Order Minister Nikos Dendias said recently, after striking shipyard workers broke into the grounds of the Defense Ministry. "If we can't contain ourselves, if we can't maintain our social cohesion, if we can't continue to act within the rules ... I fear we will end up being a jungle."

Not even close, Mr Dendias.  Greece is following the eternal cycle.  From oppression to revolution, from revolution to freedom, from freedom to prosperity, from prosperity to entitlement and indolence, from entitlement and indolence to anarchy, and finally from anarchy to dictatorship and oppression.

And we're heading in the same direction.