By Wolfgang Schaeuble’s own admission (he is finance minister of Germany), Europe has an intractable problem.
“We need to be more successful in our fight against youth unemployment, otherwise we will lose the battle for Europe’s unity,” Schaeuble said.
If U.S. welfare standards were introduced in Europe, “we would have revolution, not tomorrow, but on the very same day,” Schaeuble told a conference in Paris.
Uh, Mr. Schaeuble? Welfare causes unemployment. Its voracious apetite for capital defunds productive enterprise. Its perverse incentive encourages sloth and discourages work. Skyrocketing budget deficits crowd out private borrowers, and force central banks to lower the rate of interest to keep the budget deficit from exploding.
And now you have reached the endgame. You cannot provide employment to the youth. And you will soon fail to be able to provide welfare. The endgame of socialism and central planning is always the same.