As you probably know, Greece is broke because of generous social programs and overpaid government workers. The Greeks accumulated so much debt that they needed to beg for multiple bailouts. Now we're told that Greece has been forced to drastically cut government through "austerity measures."
But one European country has enacted real austerity.
During the crash of 2008, Estonia's economic output fell by 18 percent. Instead of calling for more government, Estonians called for less. Estonians lived under communism for decades. They know that central planning is a fatal conceit.
Estonia cut government, lowered government worker salaries, raised the pension age, lowered taxes and simplified the tax code.
What happened? While most western economies struggled last year, Estonia's economy grew almost 8 percent. It's the only country in the Euro-zone with a budget surplus. Its national debt is just 6 percent of GDP, compared to 165 percent in Greece.
Politicians, even Mitt Romney, say that spending cuts will throw the economy back into recession. They ignore examples like Estonia.
The political class wants to make life better by contenting to spend more. I say, No They Can't!