Why Europe's Debt Crisis Will Keep Coming Back

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The debt problem comes down to an aging population, coupled with a zero birth rate, and a work force that either delays its entry into the work force, or exits too soon. That work force ends up taking out longer than it put in. Here is an example: someone working for 25 years for the public sector retiring at 55-60 and living another 30-35 years to 90-95. Europe is a nice place, but has used it's influence from the past 1000 years, rather than acutual resource and service production to maintain it's growth. France, Germany, and Switzerland are strong, but if they keep having it bail out their neighbors, it can drag their economies down. Let us not forget they too have huge losses in the default/credit sector, and have huge overhead in the health care sector. France also has a huge influx of immigration with no place to work. A high Euro makes the high cost of living unstainable for most, and keep them dependant on the government for benefits. It also prevents too many from building any of their own dependancy. This dependancy includes Greece depending on Germany for money since Germany owns most of there cash flow entities(meters, tolls, etc.) Socialism does not destroy wealth, it prevents it. Those already wealthy from integenerational wealth and prestige can make smaller business owners from attaining any level of wealth described. I am not saying it is all about money, but I always thought it you wanted more tax dollars, you allow more millionaires to be created so you can tax them. If you tax income too much, you do not go after the wealthy for most earn theirs from interest, dividends, and sheltered investments(non-for profits, trusts, etc.). Europe has a competitor knocking on it's door, and its Asia. The U.S., Canada, and Brazil, are at an advantage for they are resource rich. Europe, which imports virtually everything is not. WHo is the wild card? People. People here in the U.S., India, China, Japan, etc. are working 50+ hour work weeks. People in France are fighting to keep a 35 hour work week. Competition is about efficiency and effort. Right now, Europe's effort leaves something to be desired.

Freedom of IL 9:01AM July 08, 2011

You obviously don't know that much about the real Europe. First of all healthcare is really expensive, and in some places so is public transportation. Also the unions in Greece have stifled the economy not helped it. In fact it is due to the unions and massive tax fraud that they are in the position they are. And as for new roads and bridges, parts of the US have that too.
Don't get me wrong - we are also screwed, but Europe is anything but fine right now.

Cwink of TX 12:01PM July 02, 2011

did you read the article or say, the wall street journal or listen to 'democracy now' or watch tv or ...... Greece was able to borrow tons and tons of money at low interest rates thanks to Germany and France. The government gave everyone (even people who weren't relatives!) a job with great benefits that even the French and Germans could envy. But what does Greece produce - I usually buy stuff made in China or Germany. So what did they do with the money? They created a lovely socialist decade you described above. Now the money is gone, everyone is mad as hell and want the milk bottle put back in their mouths. If they weren't in the EU they could devalue their currency and sell stuff cheaply. But the people they owe and are borrowing more from don't want them off the hook. It's nasty and scary because no one knows what is really going to happen. But the pooch is definitely screwed in Greece.

Therese of NM 4:25AM July 02, 2011

The leading nations in most idices in the world (except maybe the fattest, or the most overpopulated, or the most in debt).
Quality of life is excellent, and the fate of individual nations is not what that place is all about. It is like saying the United States is collapsing because California has a budget deficit...
Yes - debt strains the Euro zone, but the Euro has gained so much the past 5 years, it's time the place cooled off a bit. Spain, Greece, Portugal and Ireland have always been weak economies. They rose some after joining the EU - but they were never giants. Germany, France, Sweden and Switzerland have always fuelled the prosperity in Europe. Austria, Luxemburg, Denmark, Finland, Norway, Belgium and sometimes Italy have maintained stability. The nations work together, diplomacy still works, fiscal planning mechanisms still are in place, and the region maintains its reputation as a place where quality products are made....People still pay top money for Europroducts.
The author of this article almost wants us to relish the fact that someone else may have a screwed up economy worse than ours. They don't. A few weaker countries in a union of 27 countries is to be expected, but in no way does it mean the Eurozone is in trouble. Overall debt is low, household debt per capita is very low, and debt to others outside the Eurozone is very small. Most is owed between EU members.
The dynamic there is remarkably different. New roads and bridges, new renewable energy sources, restful relaxing vacations, healthcare is strong and affordable, college does not bankrupt a family - $200-$2000/yr in most cases, people don't have to own a car due to wide public transport networks, intelligent conversations by politicians who do not yell at each other - are educated - and work to compromise for the benefit of all. Unions are widely joined and the government and management work together with the unions as equal partners with some strikes, but overall good results. Leaders and the elderly are treated generally with respect, and most know a lot more about politics, economics, geography and this country than most Americans.
The writer should take care not to try to minimize our own shortcomings by trying to misrepresent the issues in other countries.

DeeToo of SC 2:29PM July 01, 2011