huamulan wrote:Hilariously (given your statement 'It's much harder to have a debt over 100% of GDP with a small government than it is a big government') none of those European countries have a debt over 100% of GDP, yet the USA does. Despite its smaller government. Does this tally with your loathing of 'big government'?
This is mincing terms a bit. Public debt is recycled back into the economy, external debt is a net loss for a country. The US is in a pretty bad shape with 100% external debt, but it's not really even in the ballpark of nations like Sweden, Netherlands, UK, Liberia, Burundi, etc., all which have over 200% external debt (350% IIRC in the case of the UK). Even Finland is north of 150% external debt.
Canada seems to have had the most responsible spending practices in the western world, though - conversely - it could be argued it was a net trade-off to being transformed into a client state of another nation. Ultimately, if things really go south for the U.S. they'll just take whatever they need from Canada, this is how all militarized nations in history operate. So, Canada's good times are directly dependent on the U.S. doing very well for itself.
huamulan wrote:If you'll forgive me for using Gaddafi as an example yet again: he provided free healthcare, free education and social housing with a national debt of 0% of GDP. 'Big government, big debt' indeed.
In the People's Jamahiryah funds were distributed directly to the Basic People's Congresses and the people themselves, not retained - for the most part - for central government spending. Similar to Alaska which pays every citizen $2,000/year as a cut of their oil revenue. This is not welfare if it's an unregulated, direct disbursement as a cut of a nationalized industry. It becomes welfare if it takes the form of an indirect/regulated disbursement (e.g. "I'm going to build a library for your benefit.") which turns the people into cows of the state.
THE THREAD wrote:BACK ON TOPIC
GP is clearly right that Greece can't be kicked-out of Europe.
Just as a thought experiment, could the rest of Europe withdraw from the eurozone and form eurozone II leaving Greece the only member country remaining? This would be a de-facto expulsion. (Maybe they wouldn't tell Italy, Ireland, Spain or Portugal they were leaving ...)