Fate of Euro-Zone Economy Splits Optimists From Pessimists - WSJ.com

SOCIALIST DELUSIONS: Fate of Euro-Zone Economy Splits Optimists From Pessimists - WSJ.com: "- Sent using Google Toolbar"

Some how the simplest analogies are omitted as interest groups (let's start with public employee unions in France) struggle for things they want with no understanding of how growth is achieved, let alone basic economic productivity.

As an example, consider the story of a farmer.

The farmer knows he needs to save 10% of his crop each year for seed to plant the next crop. He knows too that if he works hard and either clears some new land (venture capital) or saves up and acquires more land from a neighbor (merger or acquisition), he can produce more.

Likewise, if he doesn't get to keep 10% of his grain, each year he/she will be producing less.

Now take the French unions. They want to retire but have someone else pay for them to not product (maybe from age 60 to say age 90). They don't think they are taking it from their farmer neighbor per se; but, they do expect the equivalent of that farmer to somehow keep producing more and more each year when left with less and less 10%.