Update: On Doctor Zero’s blog, a reader named Max made this comment and I couldn’t resist adding it to this post too:
“In economics, a didactic way of explaining wealth production mechanisms is the idea of the deserted island. When you are in a deserted island you get what you produce, no more no less, and the starting point is zero. Most of the statist and socialist utopia is based on “existing wealth” as if it was some kind of natural accident, when the truth is its always the outcome of some kind of pre-existing successful capitalist endeavour. Socialism tends to be a scavenger, like it or not, and its “success” is mostly dependant on the amount of meat on the bones of its predecessor’s corpse.”
That’s the problem with the Euro approach… they’re starting to run out of the existing wealth and the economies are not dynamic enough to be creating much new wealth. This is not because the people have no talent or imagination or are otherwise incapable of creating wealth. It is that the dominance of government is crushing the private sector.