Europe’s current problems should be a huge wake-up call for America, says former federal reserve chairman Paul Volcker.
“If we need any further illustration of the potential threats to our own economy from uncontrolled borrowing, we have only to look to the struggle to maintain the common European currency, to rebalance the European economy, and to sustain political cohesion of Europe,” Volcker said.
“There are serious questions, most immediately about the sustainability of our commitment to growing entitlement programs,” said Volcker, who heads an outside panel of experts advising Obama on the economy.
Europe shows government hand-out spending has its limits, even if it can look sustainable for a long time. The same goes for budget deficits and growing government debt. America’s not quite there yet, but Europe is a nice peek at one potential future best avoided.
Business Insider Emails & Alerts
Site highlights each day to your inbox.