An Epidemic of Amnesia - Barrons.com

A PLAGUE NO MATTER HOW YOU LOOK AT IT: An Epidemic of Amnesia - Barrons.com

It would seem reasonable at this point to bring up the nemesis that appears to be the real plague (and, as with the Romans in the 2nd century AD), they really don't want to face what they are up against.

In other words, fiscal type policies. (For the Romans it was the epidemics from the East.)

Examples here in Europe and let's take Portugal, are government policies that drive business away - and thus, increase the cost of labor and the returns on capital. These could be changed. A few nibbles at change are being made.

But, as in the US (especially with Medicare), who's to complain when buying a service at 10 cents on the dollar?

People get to believe they are 'entitled' to subsidized whatever. In Greece and Portugal, it may be a featherbedded job at some government-owned entity like the rail roads.

When one thinks back to the 70's, it was really the change in fiscal policy that made reining in inflation possible.

To think inflation will cure any problems without addressing the underlying cause of those problems (don't read: too much accumulated debt), the problems won't disappear; and, if memory serves, the 1980 election was to a large extent fought over the issues before the US today - i.e. can we focus on getting the economy to grow again (Republicans and esp. the Tea Party); or, are we concerned about social redistribution and hoping for growth with added regulations, taxes and the impact of the share of GDP going to government ignored (Democrats).