Europe’s Real Crisis - Magazine - The Atlantic

Euro-style socialism, such as that pushed by American Democrats, as I have argued in the past, is a demographic indulgence. Nations that have adopted socialist programs that unfortunately have been largely unproductive are now paying the price for over-indulging. Central government resources have reached a point now, where they can no longer reasonably service the debt that they have run up in paying for these wasteful programs.

Demographics will ensure that these nations will not and cannot grow fast enough and this headwind coupled with deadening central government regulations and red tape promises to keep growth lower than is necessary to service these debts. Nations will either default on their debt obligations or default on their obligations to their people.

Most of the socialist nations in Europe and also the USA will default on these obligations and the cost of this default on obligations will fall on groups with different effect since at first political considerations and those with access to government such as the wealthy and the elderly will fight to retain what in the first case they have earned and saved and in the second case what they have been promised.

Europe’s Real Crisis - Magazine - The Atlantic