Posted by Leonard Steinberg on November 7th, 2013

The European Central Bank cut interest rates to a new record low on Thursday, responding to a slump in inflation that has sparked fears the euro zone’s economic recovery could stall. Is this a move as a result of too much government spending and over-taxing? Were taxes raised before these economies recovered? Growth of the economy and balancing budgets is the key to a successful, sustainable recovery: Balance the budget with cuts then move on:  it’s called “personal responsibility” something sorely lacking in our world.  Pandering to different groups for the sake of votes and elections just delays the pain, a pain felt mostly by the people the ‘system’ is trying to help. Governments do not create jobs, they simply transfer wealth and that is not something anyone can live with….most of Europe is BROKE.  If industries and the wealthy move out, jobs go with them and growth declines making things worse. its a cruel system at times but dealing with the truth and reality, however hard it may be, is the only solution. Only once an economy truly improves should you tax higher to curb inflation. Deflation is worse. Record high unemployment in the euro zone is pressuring wages and spending, and banks are still reluctant to lend to the real economy, another key source of growth.

Elected officials should look at this closely: California Governor Brown is doing a remarkable job of being a centrist, pragmatic leader, when all believed he was a nutty left-wing liberal out of control…..California has a balanced budget, a combination of entitlement cuts, tax hikes AND incentives for commerce.  I suspect Mayor-elect de Blasio will be equally smart about our City and economy.