Greeks Reject Austerity/ Supreme Court Blocks EPA

Voters in Greece have overwhelmingly rejected creditors’ demands for more austerity in return for rescue loans. This has given impetus to prime minister Alexis Tsipras’ left-wing government.

Greece is a very socialistic nation. It got itself deep into debt through decades of heavy spending when times were good. But when the global economy went south after 2008 Greece was deep into the till and could not get out. Its economy is collapsed.

Greece’s so-called Debt-to-GDP ratio was 170% when it went bust. Anything above 60% is considered dangerous. Japan’s current level is 270% and Japan has been in severe recession since 1990. Because it just keeps spending, hoping that spending cures the crisis.

It won’t. It only makes it worse. America’s Debt-to-GDP ratio is 100% – our national debt is $18 trillion and our annual economic production is also $18 trillion.

Socialism has pushed government spending all over the world into the danger zone. And when you get into the zone it becomes harder and harder to get out. That is how debt kills individuals, families, businesses and entire nations. Obama has piled on the debt year after year even as conservatives have warned against it.

The Founding Fathers of America warned against debt, as all rational people do. Then when the American economy stops functioning well they blame it on Bush or Romney or on “capitalism”.

US debt was 60% of GDP when George Bush left office in January 2009. Our high debt load today is the main impediment to new economic growth. America today spends more than $400 billion annually just to service our debt, but not to pay off a penny of it. Imagine if that $400 billion went into investment for new job creation rather than paying interest on the debt. Our economy would be singing.

Debt builds through wasteful spending. Endless programs and handouts are killing the economy. Wasteful spending on ridiculous “studies” about everything under the sun creates more debt. The suburbs around Washington, DC are the richest per-capita counties in America because the overpaid federal bureaucracy lives there. Meanwhile average Americans cannot find jobs because the nation’s cash is being diverted out of the productive economy and to the government.

Said Greek resident Yiannis Gkovesis, “We don’t want austerity measures anymore, this has been happening for the last five years and it has driven so many into poverty, we simply can’t take any more austerity.”

Yes, sir, but you will never have growth again until you tame your debt. It is a Catch 22. The best thing is to continue to tighten your belt. And the sooner the better.

Now here is a great word about energy. The Supreme Court has ruled against the Environmental Protection Agency’s effort to limit power plant emissions. The Court said that EPA “unreasonably” failed to consider the cost of the regulations.

The new EPA rules curbing emissions of mercury and other air pollutants started to take effect in April. Justice Antonin Scalia wrote that it is not appropriate to impose billions of dollars of economic costs in return for unknown health or environmental benefits. “EPA must consider cost, including cost of compliance, before deciding whether regulation is appropriate and necessary,” the court said.

Good. This is what we need in America. Rather than blindly adding costs in the name of some nebulous environmental improvement we must consider cost-benefit analyses. Because you always must know the ultimate cost before you can determine the ultimate benefit. The case now goes back to lower courts for EPA to decide how to account for costs.

This is a big win for conservatives who have been arguing for years that EPA is far overreaching in setting these limits arbitrarily. This is also a win for the rule of law in our Constitutional republic in which legislative bodies, not government agencies, are supposed to set the agenda.

This Supreme Court decision is yet another case of applying rationality. In the Greek case the voters opposed the rationality that their nation needs. And Greece will suffer even more in the long run. If Greece does not fix itself it may well fall out of the Euro zone economy which would harm the nation much worse. It should do everything it can to repair its economy responsibly as soon as possible.

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