Lesson for governments

May 15th, 2012 by De Onion

Walton Brown without fail misses the salient issues and it’s an embarrassment to have him publish in our daily newspaper. This week he’s missing the point on government austerity.

The lesson for governments is simple: Unless you have your own currency (USA, Japan, UK) then you can’t spend more than you make for very long. Austerity is inevitable for these European countries just like it’s inevitable for Bermuda. For us in Bermuda, here’s why:

The PLP has increased spending far more quickly than income has increased. THAT is why Bermuda has to cut spending, and yes, that will hurt the governing party’s political chances and rightly so if it’s the PLP. They put us into this mess.