Tuesday, May 30, 2017

Trump Right, Merkel Upset

CNBC columnist Jake Novak writes that Trump's approach to Europe - backing away from the Paris climate accords and insisting Europe pay its fair share of defense costs - is the right one. I won't try to summarize his arguments, you should read them for yourself.

Basically, Novak observes Europe has been "free riding" on U.S. aid and defense spending for the last 70+ years. You could argue it was justified for the first couple of decades of rebuilding wartime damage, it hasn't been justified for the past 50 years.

Free riding is how Europe affords elaborate social spending. Social spending we cannot afford because our money defends them, in addition to ourselves. Trump is absolutely correct affluent Europe needs to carry its own weight.