Borrowing money to expand government services while awaiting an economic turnaround is a policy tried by the European Union — and that has driven them into the second wave of a double dip recession.
In Europe, the “rich” nations carried the poor nations until the rich nations were threatened by their own problems — caused by carrying moocher nations.
Moocher nations of Europe, Portugal, Spain, Ireland, Italy and Greece say, “We need more money! More time! We can’t stand this austerity. We exceeded our debt limit, now, to keep living beyond our means, we need you “rich” nations to pay our bills.”
(Sounds like someone I know!)
Meanwhile Socialist President Hollande of France is realizing the limits of socialism. In pre and post election tirades he railed against and threatened to nationalize a steel plant owned by an Indian billionaire – which pleased his union supporters, but caused massive shifts in investment in France, and Hollande had to back down.
France is Europe’s second largest economic nation, but other nations like Poland and Spain have either hit bottom or just reformed – causing investment to flow there instead of to a economy where the Socialist president threatens nationalization.
The unions that supported Hollande’s Socialist government feel betrayed, but people and money flow to where they are wanted.