Economists around the world are fretting about what the Greek fiscal collapse means for the rest of the world. Well, it’s quite simple, really. It means that socialist economics are unsustainable. It means that a fiscal regime based on massive borrowing to finance a bloated public sector, lush benefits for civil servants, rampant welfare fraud, and systematic tax evasion by the wealthy and politically connected cannot long endure.
The Obama Administration’s top economists are trying as hard as possible not to learn any lessons from this.