Unlike Greece, the U.S. economy is far bigger and more diverse. American institutions, not foreigners, hold most of America’s debt. Unlike Greece, which is tied to the European Central Bank, America controls its own currency and monetary policy. But writes the Cato Institute’s Michael Tanner, we have far too much in common with Greece for comfort. Furthermore, the EU is requiring Greece to make changes to its pensions, labor and regulatory policies, and tax system, but who in Washington is going to impose similar fiscal discipline?
… fiscal discipline is not going to be imposed on the United States from outside. If we are to get our fiscal house in order, we are going to have to do it ourselves.
Unfortunately, to see how hard that will be, just look to Hillary Clinton. At almost the same moment that the Greeks were being dragged kicking and screaming toward economic responsibility, Clinton was delivering a speech promising to move the United States in precisely the opposite direction.
Clinton’s economic speech on Monday was one long promise to spend more, tax more, regulate more, and redistribute more. In short, she vowed to make the United States more, not less, like Greece — the pre-reform Greece.
That leaves an opening for a Republican to pick up the banner of fiscal restraint and run with it. But so far, the GOP candidates seem to be talking about anything and everything else. And every day of silence makes a Greek-like day of reckoning just a bit more likely.