Greece passed austerity measures to secure another bailout from the International community. The people are still rioting. With austerity measures, government workers get lesser salary, benefits get cut, pensions stripped down or not honored – it can be anything to avoid any expense. Greece’s mostly socialist government is to blame (I read this on an article online). Without capitalism (read accountability), favoritism takes over and some people get paid more even though they produce less. Very much like the corrupt politicians and administrators. Without accountability, governments come and spend more than what it earns and ends up in deficit – this is much like any business, you can’t spend more than your earn. True even for individuals – spend more than you earn and you will soon be facing creditors and bankruptcy. Exactly the same case with Greece and other governments. Same is the case with many US State governments and the US Government too. California, Wisconsin, New York New Jersey, etc. There are a very few states w/o a deficit. The US Government recently increased its debt (read the tax payer’s burden) over 40% in the recent years after the financial crisis. Add this to the spending in the name of war that went on since 2001. The end result is the tax payer is holding the bag. You might not notice it now. But if the deficit isn’t reduced, the credit worthiness of the government will go down and it will be more difficult and expensive to borrow money just to keep the business(government) running. Then will come austerity measures just like Greece is facing now. That means all the monies you and I contribute and have contributed to Social Security or Medicare, etc might not mean anything to us in retirement. We might not even see a dime of it back. And we have no choice but to keep on contributing.
Much like during the financial crisis, those people who were responsible for the crisis were never determined nor sent to jail. Likewise, Governments will come and go and they make decisions that are not treasury-friendly but aiming to please the people who vote. In the end, no one in the government will be accountable and you and I will be pay for it. With Capitalism, ideally you must see accountability. In Businesses, you will But the government is given a different hand. None of any government officials will be responsible as they disappear after four or eight years in office. Take the Federal Reserve chairman for example. He is responsible for only the monetary policy. The government is responsible for the fiscal policy. There are numerous other branches of government that oversee their own domain like the SEC or the IRS, etc. While no one has/had direct responsibility overseeing financial functioning of the businesses (we don’t want interference agreed), no one (branch) could see the financial crisis coming. If none of these officials aren’t responsible to prevent a crisis from happening, who else is? Does government always has to be reactionary? So Socialism doesn’t work (Greece) and Capitalism (US) doesn’t work either in protecting citizens welfare. We don’t want Communism (China and its repression). What else will work for the hard working tax payer? I am no doomsayer, but the dream of the promised land is at serious jeopardy now.