First Detroit and now Greece.
In a previous post a video was shown to demonstrate what a combination of liberal policy, federal expansion and a city reliant on one source of revenue can turn into, a heaping mess. Although no video this time, an article from IBD attempts to tackle the question of Greece. What is happening in the small Hellenic country and why are investors dumping Greek bonds in fear of a default? Greece may be the tip of the iceberg, but much can be learned from a municipal enclave like Detroit to a small European country like Greece. Years of embedded socialism — in spending, labor and regulatory practices — are responsible. They've enabled the government to consume the very economy that's supposed to sustain it. Even supposedly right-of-center parties spent state cash the same way. The last party in power was nominally conservative, but failed to stop expansion of government. It kept hiring, kowtowed to union demands for fear of strikes and did little to change ...