Over at Ace of Spades, Monty explains economics - and how we got into the trouble we're in.
Sovereigns are learning an uncomfortable truth about how to avoid insolvency: limit the welfare state. It is good and necessary for a sovereign to look after the most weak and helpless and downtrodden among its citizens; it is both the civilized and the moral thing to do. But when the ranks of victims expands to encompass one-third to one-half of the entire population, something has gone badly wrong and disaster cannot be far away. Kindness is a moral virtue, but it becomes a positive evil when it threatens to collapse the state itself. “Kindness” that leads to insolvency is not kindness at all, because it brings much suffering and sorrow in its wake.