The damage of Socialism is debt and borrowing. The overspending takes time to accumulate Huge debt takes time to accumulate.Time is the enemy of Socialism. Socialism is like jumping from a tall building. On the way down there’s no problem. It’s the splat at the end that’s the problem.

A nation with a large number of people that stretches over several timezones can be socialized easier than a small nation like, for example, Greece where the failure of Socialism is easily visible. A small nation is unable to afford a welfare state faster because the payments necessary to pay welfare recipients can be offset by loans and debt but not for long. Welfare cannot be paid if the costs must be paid immediately. There’s not enough money. Social Security was eased into the economy over time. Time was the lubricant that eased the deed.

Look at the pension crisis in Pennsylvania. A rather small state, with about the same population and size as Greece. Greece has borrowed $379 billion. Pa has borrowed $121 billion but that doesn’t include another $150 million in so-called unfunded liabilities due to the public employees pension costs. So PA is about $271 billion in debt which is about 71% as much debt as Greece which is admittedly bankrupt because of welfare payments. So PA is almost as bankrupt as Greece but PA’s debt doesn’t include Federal Debt. Greece’s debt does.

Why so much government spending in Greece, PA and America? Welfare payments. Food Stamps. Empty government jobs. The overhang from government. Free Obamacare. Empty government jobs are welfare just as much as food stamps and welfare payments. As long as America can continue to pay for free medical service, as Obama said the Federal Government does, some people will get more free welfare money. The welfare and free medical will continue until the borrowing is rejected and America defaults, just as Greece did.

Nations don’t have savings accounts or annuities from which they can take money when the income from manufacturing isn’t sufficient to pay the welfare payments. Money doesn’t grow on trees. Either it comes from taxes and fees or it’s borrowed. The borrowing is the national debt. The manufacturing and services are the GDP. When the GDP is high enough the politicians can keep on charging people and companies more and more to keep paying for welfare. When that’s insufficient the banks and the International countries won’t loan or advance any more money. Greece cannot pay it’s bills but it won’t admit it. Do there’s no more money in the banks and Greeks can’t get more money than the banks will release.

Either Greece figures out how to earn more money to pay for the borrowing that was caused by the welfare state or the sellers of things will start charging higher prices for their products. That means milk, bread, coffee, meat and vegetables will cost more to make and buy. Sooner or later the welfare state takes more money to sustain than is available. Then the prices rise and the currency is devalued. The problem is Greece is not in control of it’s currency. That means it cannot inflate the Euro so it will have to begin printing it’s own money. That’s what welfare dos. It leads to bankruptcy; inflation and an economic collapse until Capitalism can rescue it once again. But it took time to get here and more time will make things worse for Greece and America. Time is the enemy of Socialism because it takes time for the over-spending to accumulate.

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