Video - IMF Predicts Lower Growth in World Economy - WSJ.com
It would be nice to see a Lafferesque take on these global economic events - something which is distinctly missing.
Taxes and government are too big! Austerity through tax increases is the antithesis of what logic would say is needed.
The analogy of economies being like a person climbing a hill with a backpack seems called for - to wit, the more in the way of taxes and regulatory burdens thrown into the economic backpack, the more difficult the economic climb (read: growth).
For a while, the drug of government borrowing can mask the difficulties - but, cutting back government and people's sense of entitlement to government care is clearly missing.
It's not to say that government can't place certain burdens on the economy; but, when government is run by non-investor, non-business people, then the right balance is something they can't imagine. Such non-business types just see what they want to throw into the economy's backpack. They don't consider the impact.
One can't help but think of the story of the camel and the straw! The straw clearly has hit the Greek economy and it has laid down like the camel. Sadly, the government and people of Greece can't see their way to take everything off the camel. At least that's how the story goes - i.e. once the camel has sat down, it won't get up until everything put on it has been taken off!
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