Is it the Green Fairy's Fault?

     Two recent articles about the European Union seemed
unrelated.  Then again, maybe not.  The first was about the EU
parliament considering revisions to the definition of Absinthe,
also known as the "green fairy."  For some on this side of the
puddle, Absinthe may not be a familiar beverage.

     Absinthe is an alcoholic beverage that, traditionally at
least, contained a touch of thujone that is described as a
wormwood plant toxin.  Doesn't that make you thirsty?  The
thujone gives the green fairy its color and its wings.  It
supposedly causes hallucinations that "inspire" poets and writers. 
I know what you are thinking, but, I never touched the stuff.

     After due deliberation the EU parliament decided to punt
and leave the definition alone.  The definition doesn't require
that the green fairy contain any thujone.  What is left of the
green fairy without any fairy?

     Whatever the results, Doesn't the EU have enough bigger
problems to occupy the parliament's time?  Considering what
usually comes out of the EU parliament, fiddling with frivolities
may well be the best use of its time.

     I was ready to ignore the green fairy controversy.  Then
Reuters posted an article reporting some musings of Martin
Schulz, president of the EU parliament whom the reporter
described as a socialist.  Is describing a member of the EU
parliament as a socialist redundant?

     Mr. Schulz offered, "We saved the banks but are running
the risk of losing a generation."  He is probably overly
optimistic in believing that the EU bailout saved the banks for
more than a brief spell.  His other point deserves more serious
consideration.  Young people in various southern European
countries face unemployment rates of 50 percent and above.  In
the US only teenagers face such levels of unemployment.

     Then I read Mr. Schulz's prescription for a cure.  That
was when my mind drifted back to the green fairy.  Perhaps
while considering the hallucinating green fairy Mr. Schulz tested
a few too many bottles.

     I won't repeat all of Mr. Schulz's plan.  The substance of
it was that the EU should spend billions of euros to provide jobs
or welfare for unemployed young people.

     Let's see.  The youth are unemployed because the people
of various European nations are too broke to invest in the
facilities to provide productive jobs for those who want to work. 
The governments are worse than broke.  They wallow in debt
and are at the end of their lines of credit.

     Where will the billions of euros come from?  Oh, I
almost forgot, the EU can print the euros.  Unfortunately the EU
can't print anything to buy with those euros.  More money
without more things to buy isn't much of a solution, except for
those who enjoy the taste of money.

     In the short term the people in countries that squandered
their investment capital on spending binges can't do much to
help themselves.  All they can do is work at low paying jobs,
scrimp and save to replenish the investment that will again allow
workers to be productive.

     The only other option is to attract investment capital from
other countries.  High taxes, regulations and government
spending doesn't create an environment that screams "INVEST
HERE!"  The EU and the European national governments need
to clean up their acts and be responsible.  They can spend their
way into bankruptcy and poverty.  They can't spend their way
out, no matter what the green fairy may have whispered in their
ears.

     Should we in the US care?  The green fairy seems also to
be whispering in the ears of some congress critters.  The US is
plunging toward where the worst of Europe is now.  By letting
Europe serve as our bad example perhaps we could avoid its
fate.  Then Europe's self destruction would not be a total waste.

                                 * * * * *
                                  * * * *
                                   * * *
                                    * *
                                     *
Copyright 2013
Albert D. McCallum