Like our country, Greeks have long slid down the slippery slope of socialism. They are now gambling with their country’s future like Jimmy the Greek. It’s a consequential moment for the eurozone. Now we see what happens when a country runs out of other people’s money.
Leftist Prime Minister Alexis Tsipras convinced the entitlement-minded Greeks to vote “no” on repaying the debts that fund their lazy lifestyle.
The country has run up unsustainable budget deficits with lavish government spending on unions, early retirements for government workers beholden only to the political class, impossible labor laws, regulations, taxing the most productive, subsidizing failing businesses, Madoff-like accounting practices and socialized health care. Sound familiar? It could be Barack Obama’s own “I Have a Dream” speech.
Hypocritically, President Obama called the Greek prime minister to discuss the deteriorating situation. Tsipras responded, “Are we talking ours or yours?” In one of his many “Do as I say, not as I do” moments, Obama lectured Tsipras that Greece should curtail spending and reduce its debt. Then the Greek leader advised Obama on the best ways to make a tourist destination from the ruins of a once-great country.
Sixteen percent of Greece’s budget goes to fund government pensions. Pandering populist politicians then raise taxes to fund unsustainable financial promises. The productive people leave the country, along with the businesses they own, and the situation spirals down.