The Western world does not want to accept it, but we are broke. There is no other way around it. The United States of America is bankrupt, Canada is running budget deficits and Europe is trying to fight its debt-ridden ways.
There is no other choice for these nations, but to implement austerity measures. Although public employees, unions and those depending on government services are fighting hard to not allow the government to go ahead with their budget cuts, they have to realize that paying the bill is going to come sooner rather than later.
Governments in Italy, Ireland, Spain and Great Britain have passed austerity plans. Since some austerity measures have been passed, leaders are still calling for more austerity because they have been too little.
“We are building on the initiative of last December, adding new member states to the team of those who are determined to ensure that we have effective budget discipline within the European Union,” said Minister for European Affairs, David Lidington, in an interview with Agence-France Presse.
“We need to make the best use of the European budget to create better conditions for growth and make Europe more competitive. We need to spend better, not to spend more.”
The term austerity has made international headlines due to the riots, protests and civil unrest in Greece and other parts of Europe. Citizens in these countries are against the planned cuts to social services, which have led some to say that this has provided proof that central economic planning, government dependence and debt Typhlosis do not work.
Austerity measures have taken hold of politicians who do not see any other choice but to stave off a default. Now some countries have so much debt, such as the U.S., that it is impossible for them to pay off the debt. These nations will only have two options when debt has reached a boiling point: inflate the money supply or admit that they cannot pay back the money.
Some analysts and public officials say that if governments underwent austerity measures years ago – even maintaining their debt and cutting spending – then the problems we face now would not be exacerbated and persist.
Republican Congressman Ron Paul said in a GOP primary debate during the 2008 presidential election that a country is destined to live beneath their means as long as they live beyond their means.