Tuesday, June 26, 2012

The View of the Euro Situation From Inside

Most Americans don't know where Estonia is, let alone anything about it. Suffice it to say, Estonia was once under the boot of Stalin's Russia. Now they are being bled-dry to pay for excesses of others in the Euro-zone. (I won't name names, since you already know who they are.)

From Estonia we get something that isn't too common in politics today, a reasoned exposition about the facts of (economic) life. Eventually, somebody has to pay the bill. I’ll Gladly Pay You Tuesday | Hoover Institution

I won't quote much, it is long, and most of it is good. Good enough to receive some of your time. But I will give you this.
You can do it for a while, but if you are a country like Estonia, where the gdp per capita is almost the same as Greece but where the average salary is lower than the Greek minimum wage and where the pensions and agricultural supports within an internal market are three times lower, it is a matter of time before our voters revolt. The government in my country and the opposition voted to support the European Financial Stability Facility to aid a country richer than us and profligate. Three quarters of the parliament voted in favor. But, note: 75 percent of the population was against.
Esontian (and Germany and a few others) lived by the rules. Others did not, and now complain that the austerity they face - what Estonians saw as every-day life - is "unfair." But yet it is "fair" somehow to live beyond your means, borrow money you have no hope of paying back, make agreements in April that you disavow in May. Such is the world we live in.
[Hat Tip to On a Wing and Whim]

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