[5/10/10] Greece as a Model (Part II)

Here is Robert Samuelson on the Grecian problem... and the Portugese problem... and the US problem.  It focuses on the international finance aspects of the welfare state instead of the supply side aspects as my earlier note to you did, but the conclusion is the same:  when your transfer payments get too large, you produce less than you consume, and you can continue that only just so long by borrowing.