By Robert J. Samuelson
Washington Post
February 22, 2010
It would be possible in other circumstances to disregard the ongoing story of Greece and its debts as a tedious tale of financial markets. But there’s much more to it than that. What’s happening in Greece speaks to two larger issues affecting hundreds of millions of people everywhere: the future of the welfare state and the fate of Europe’s single currency — the euro. The meaning of Greece transcends high finance.
Every advanced society, including the United States, has a welfare state. Though details differ, their purposes are similar: to support the unemployed, poor, disabled and aged. All welfare states face similar problems: burgeoning costs as populations age; an over-reliance on debt financing; and pressures to reduce borrowing that create pressures to cut welfare spending. High debt and the welfare state are at odds. It’s an open question whether the collision will cause social and economic turmoil.
Greece is the opening act in this drama…
The article continues at the Washington Post.
