Greece is the uncle that can never get his life together.
He’s always doing the same things that lead to failure.
When hard times hit, instead of making tough decisions, he runs back to his all too welcoming family.
And, they give him the money to survive.
He gets back on his feet. But eventually returns to the family in the same state he was in before.
Greece fits the description of the uncle, but I have a better idea for who the uncle is.
It’s the welfare system.
Yep, that’s right.
Welfare is the uncle everyone keeps helping, the one who always fails no matter what.
He’s always held down with debt. His family has tried to help him get rid of it, but it’s a losing battle.
It’s impossible to rid him of the debt.
The lifestyle your uncle lives is a reckless one.
He can’t handle money, he can’t even get enough of it to live on.
Credit cards are his go to form of payment.
He wastes massive amounts of money on new fads, pipe dreams, and “good times.”
Your uncle is a bona fide loser, just like the welfare system has proven to be.
Both are failures in their own right. But instead of treating them as such, the families treat them like prodigies.
Without the welfare system, where would we be?
We can’t abandon uncle? He’s family.
Sorry, but uncle is a bum. We can’t keep supporting his downward spiral.
We can’t keep supporting the welfare system’s sick cycle of debt.
Look at Greece, their economy is dying thanks to the welfare system.
The Greeks have been sold on the idea that every Greek deserves a pension, healthcare, and a stable financial life.
They’ve been sold on the idea that the state can provide these things. They’ve been told the state can do it the best.
They’ve been sold the idea of financial security.
Only, they forgot where the security was coming from.
See, the government doesn’t make a profit. They don’t earn their money.
The government takes money from its citizens by one of two ways. Either through taxation, or printing money.
This is how the welfare system is “paid” for.
Through the earnings of others.
This is why there’s no such thing as “free healthcare.”
Everything the government provides is taken from you.
This is also why the myth of affordable healthcare is just that, a myth.
You might think paying for government healthcare is cheaper compared to the private alternative. But that’s when unintended consequences comes in.
When you see the price for government healthcare, you’re not seeing the whole picture.
You’ve only seen the direct cost, not the behind the scenes cost.
Once you count up all the taxes, printed money, regulations, corruption, legal monopolization, and inefficiency that went into providing your healthcare, you’ll notice just how expensive government healthcare is.
However, let’s just focus on how welfare affects the economy.
Welfare states generate debt.
Well, simply put…the system’s too big.
Too much expenses, not enough money coming in to pay it all.
That’s why countries resort to printing money.
It’s the only way they pay for it all.
However, printing comes with a nasty side effect.
Every time the government prints money, they devalue the money you’ve earned. Effectively stealing it from you.
The same thing happened to Greece.
They couldn’t collect enough in taxes to pay for all the social services they were providing. So they had to resort to printing money. When they joined the EU, they were screwed.
Joining the EU was the last nail in the coffin. Trading the Greek drachma for the euro meant the Greeks could no longer control their own currency.
Without that control, they couldn’t print.
There was no other way to pay for the welfare state then to borrow.
The only problem with that is that sooner or later the lender will ask for their money back.
Greece can’t pay it back without drastically cutting expenditures.
They have cut back a lot, but it’s not enough. And the more they cut, the harder it’ll get.
Cutting back on social services is like ripping off a Band-Aid. It’s painful, but it needs to be done.
Greece has kept up the cycle of welfare long enough.
No country will last on such a cycle.
Debt does not grow the economy.
Printing money does not make you richer.
Welfare does not help you in the long run.
In the end, the engine of the welfare state is an engine that will bring us all down with its own inescapable destruction.