Breaking News ... More Lessons from Europe on Debt, Deficits, Economic Growth and Employment

Well, we can't say they didn't warn us. Europe, I mean.

Its economy is in tatters, its unemployment rate is at 11.6% and its debt and deficits are all huge problems.

Euro-Zone Unemployment Strikes Record has the breaking news:

"The number of people out of work in the euro zone climbed to another record high in September, underscoring the damage the region's long-running fiscal and borrowing crisis is having on the real economy as governments continue to cut spending to try to control their debts.

Eurostat, the European Union's official statistics agency, said Wednesday that 18.49 million people were unemployed in the euro zone in September, after 146,000 more people lost their jobs. The total is the highest on record for the 17 nations that now use the euro, based on data going back to 1995. The rise put the jobless rate at 11.6% of the workforce, up from 11.5% and the highest on record. . . .

The southern countries at the heart of the debt crisis reported the highest jobless rates, reflecting steep falls in economic activity as governments, consumers and businesses have all cut spending. Unemployment in Greece and Spain exceeds a quarter of those eligible to work, and accounts for more than half of the workforce aged under 25.

For the euro zone as a whole, the youth unemployment rate climbed to 23.3%, another record."

SUMMING UP

Capitalism and socialism are different systems of government which over time create vastly different results for their citizens.

In particular, Europe historically has been much more socialistic than we have been in the U.S.

In Europe it's brought about something called the social-democratic state. But whatever it's called, it's largely a system of socialism.

Will it prove to be a model for what will become our American future?  Let's hope not.

Socialism and unemployment go together.

Socialism and heavy debt go together.

Socialism is different than capitalism.

It's emphasis in on the collective and not the individual.

As Winston Churchill said, the difference between socialism and capitalism all comes down to this: "THE INHERENT VICE OF CAPITALISM IS THE UNEQUAL SHARING OF BLESSINGS; THE INHERENT VIRTUE OF SOCIALISM IN THE EQUAL SHARING OF MISERIES."

And so it has been, is, and ever shall be.

The choice is ours.

Thanks. Bob.