Europe is poor so should live within its means

[nonplussed]

...on Beeb website:

http://www.bbc.co.uk/news/business-16918000

Sorry if this is old news. Interesting viewpoint, I can't help but think he's got a point, but then again I'm not that bright. What does the PH collective think?

[TonyHetherington]

"And in Asia we live within our means. So when we are poor, we live as poor people. I think that is a lesson that Europe can learn from Asia."

Sums it up very well, I think.

[Digga]

100% correct, this is the grand elephant in the room.

You don;t need to be any brighter than to realise this fact; government takes taxes and then spends them in the form of all sorts of useful and not so useful schemes but (aside from the very few state owned 'businesses') it cannot create wealth.

Over a long perion, an economy can only spend - through the public sector - what it can tax.

I cannot recommend this book highly enough as a no bullst, esily read summary of the basics: http://www.amazon.co.uk/How-Economy-Grows-Why-Cras...

[Roman]

Guam said:

"There must be something solid to trade, then you can legitimately make money."

Lost on Every PM from <and including> Thatcher to today.

Time they woke up to the fact if you make nowt you earn nowt!

+1!