Steve Forbes: Europe’s economic policy at root of crisis
An outspoken advocate of free market economic policy, Steve Forbes writes thatvEurope is charting a course toward greater fiscal disunion.
“Today Europe is choking on excess spending, taxation and regulation and a flood of cheap money. Its feckless politicians won’t cut spending nearly enough. Worse, they saddle their countries with ever more growth-killing taxation. Europe is following the path it did in the early 1930s,” contends Forbes.
Whether Forbes is right on the cause, there is no doubt that Europe’s economic situation is affecting policies worldwide. The crisis will top the agenda at the G8 meetings at Camp David, but many fear inaction or a lack of real progress will have a devastating impact on the global economy.
The Bank of Canada recently expressed its concern that if G20 reforms are not adopted, it estimates that the world economy will be 8 percent poorer by 2015.