Debt, Greece, and the US


Greece has had over a week of riots in the streets from government union members as a result of reform attempts to avoid eventual default on the public debt.  Their budget deficit in 2009 was 12.7 percent of GDP and the Greek government has committed to bring it down to 8.7 percent this year.

The US budget deficit in 2009 was 9.9 percent and is projected to increase for the foreseeable future.  Like the public employee unions in Greece, ours have exerted tremendous pressure on local, state, and federal governments to pay salaries and benefits that are completely unsustainable.  I wrote about that last week.

What will it take before our government is also forced to behave responsibly?

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