Wealth

Similar to when the stress tests were done for US Banks, you hear a lot of analysts taking the position that since most European banks "passes" their stress tests that the tests were "too easy". Of course that logic assumes that the banks have real problems and that there is a conspiracy to cover it up.

Honestly, the problems facing Europe and the United States are by no means insurmountable. During prosperous times, generous commitments to social programs were made that in reduce economic conditions look unsustainable. However, the basic output for these countries and their ability to sustain themselves hasn't really changed.

Ultimately the prosperity of a nation is based on how much it produces versus how much it consumes. The distribution is not in and of itself an issue. What may be an issue that is related is the fact that those receiving the benefits are no longer producing and therefore impact the actual equation.

The real equation is produced vs consumed. This is true at all levels and ultimately, at the global level. However, if an individual, a local government, a state government, a federal government or the world as a whole consumes more than it produces, it will get poorer. The only way to consume more is to use accumulated wealth or to borrow against future wealth.

There are many other factors that influence the perception of wealth. However, the value of the goods produced versus the value of the goods consumed is the ultimate determinant.