Growth Key for Euro-Zone Deal - WSJ.com
Governments talk growth but they don't do what long-term growth requires - instead, it's borrow now for an extra trip to the discount store selling imported goods.
Why not talk about rationalizing the cost of labor? Of course, we know why not. The unions feel they're entitled to certain types of jobs and therefore those are the jobs there should be. But clearly the economic models that bring together all of the forces that make economies thrive or crash are ignored.
(As an example, Cain is supporting the idea of enterprise zones in depressed areas that forego minimum wage laws.)
Also, nothing is said about supporting long-term plans (tax, regulatory, etc.) to support growth. It's all short-term support that again is nothing more than one more shopping trip on the country's credit card.
When one reads that 6% interest is 'unsustainable' for Italy long term, the US should think back at what rates were like in the 1980's - let alone the 1970's.
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