Ciarrocchi: Greece’s lesson for America

The problem with Socialism is that you eventually run out of other people’s money. Greece is an example of this.

“The problem with Socialism is that you eventually run out of other people’s money.”

As we, Americans, look at the staggering economic crisis in Greece, we should be mindful of the late Margaret Thatcher’s words. Greece is not only broke because it doesn’t have its own resources; but, because they’ve also run out of previously borrowed money.

In very basic terms, Greece is spending more than it takes in. Not only that, it can no longer pay the interest on the money it borrowed to pay its old debt.

So, having run out of their own money and having borrowed money and not been able to pay even the interest, they are looking for more money. Worse yet, their leaders have been fighting back against the “severe terms being demanded” by nations offering to loan it money.

As Americans, the lessons need to be learned as we deal with our federal budget deficit, Pennsylvania’s budget and our government pension system. Even more importantly, it’s about how we approach our society and our vision of who we are and who we should be.

Greece risks “going bankrupt” because it doesn’t have the money to pay its bills. This didn’t happen overnight. Yes, the economic collapse of 2008 hurt; and, there may be several factors that caused Greece to not have enough revenue.

But, the real problem is not a lack of revenue. The real problem was that they are spending too much, promising too much to too many. Greece has spent decades creating new, ever-expanding entitlements: from healthcare to public transit.

Nothing embodies this more than the fact that Greeks are eligible to begin retirement on government pensions (similar to Social Security) at age 50. Yes, 50.

This is what happens when year after year, election after election politicians keep offering more. More help. More support. More dependancy.

You create a society that is not only economically bankrupt; worse yet, it’s being drained of its work ethic, entrepreneurism and personal responsibility.

Perhaps some politicians in Greece wanted to create a socialist paradise, not caring about the costs in dollars, or human spirit. But, I’ll bet some supported small incremental steps, here and there, until they woke up in a society where, in 2015 one can get a government pension at 50.

Whether intended or not, America could risk eventually turning President Kennedy’s words—“Ask not what your country can do for you, ask what you can do for your country”— upside down.

So, America watches (or ignores) Greece as it struggles to avoid bankruptcy, still fighting back against loans contingent upon reforms in their welfare state. More importantly, Americans ought to think more about how Greece got there and how it will survive.

It’s a call for common sense. It’s to remind us that people traveled here from around the world for opportunity or to flee oppression.

For example, Pennsylvania’s underfunded pension debt is $40 billion, and growing and needs reform now.

Our national debt is staggering. We must think twice before we create or expand an entitlement program, no matter how worthy the cause might appear.

And, even more troubling, if we continue to vilify each other while talking about reigning in spending, raising the retirement age or asking us to think twice before we create a new entitlement, we may travel down that path towards Greece. That day may not be today or tomorrow or in my lifetime. But, we cannot allow America to travel the path that might allow it to happen in our children’s lifetime. This time, learn from history.