Euro Debt Crisis is Not America's Problem: The Euro Should Be Allowed to Fail


Every day, Europe seems to be hurtling more towards a complete economic collapse. Rumors are swirling that the U.S. could be called in to help bail out some of the European countries, which after having spent irresponsibly, are now crying out for the money of others. The U.S. cannot afford to be the economic lifeline of its friends in Europe, nor should we have to be.

The credit ratings of several countries are on the verge of being downgraded. There are rumors that some nations could go back to using their own individual currency again. The European Central Bank is dumping hundreds of billions of euros into troubled banks across the continent in a frantic effort to stabilize the situation. IMF chief Christine Lagarde warned that the entire world's economy is at a "very dangerous juncture." This will be one of the selling points when it comes time to beg for a bailout. 

The U.S. could eventually be left with the choice of spending more money it doesn’t have to help bail out Europe, or once again be called the bad guy of the world by sitting on the sidelines. What should we do?

Nothing. We should have no part in bailing out the EU or any individual nation within it.  Potential resentment aside, right now we have our own problems to worry about. 

The U.S. is so far in debt that we can’t afford to bail out one of our own states, let alone another country. And even if we could, it is not our problem. The pseudo-socialist model of the European economy has done them in. Cradle-to-grave entitlements, massive social support nets, two months paid vacation, and universal healthcare have drained the continent to the point where it is reaching desperation. 

President Barack Obama’s answer for any bailout or loan should be an unequivocal "no!" Debt has been piling up at home for over a decade. It would be hypocritical for the president as well, who of course famously said that it was "unpatriotic" of President George W. Bush to acquire so much debt. (Of course, in his first two years in office, Obama, and the Democrats in the House and Senate, racked up more debt than was accumulated by the U.S. between Presidents Washington and Reagan, but who’s counting?)

Billions were spent on domestic bailouts here at home, under the heading of "too big to fail." Some here in favor of coming to the aid of Europe might use that line again. If General Motors was too big to fail, surely the Greece, Spain or Ireland would qualify as well? 

No. It was wrong for General Motors, and it would be a thousand times worse for Europe. More and more, it is becoming apparent that this is the eventual outcome of an economic nanny-state. I only hope that we learn from what we’re seeing, or in another decade we will find ourselves suffering the same fate.

Photo Credit: Sandeep