Austerity

Inflation Has Not Cured Iceland’s Economic Woes

"Both countries still have problems. Iceland’s monetary controls are notably stifling needed investment, while Ireland is left with a large debt from bailing out its banks, and this is stalling growth. One thing is clear though — the effects of monetary policy are stark and the proclaimed benefits of Iceland’s inflationary policy were counteracted by the price inflation that ensued. Don’t let a good crisis go to waste; learn something from it. As the tale of these two countries demonstrates, inflating one’s currency may give the appearance of recovery, but the truth is somewhat less rosy." Continue reading →

Continue ReadingInflation Has Not Cured Iceland’s Economic Woes

Greek Dilemma: A Product of the Dialectic

"Greek protesters rally against IMF and EU inspection. Anti-austerity demonstrators jeer, heckle and throw coins at auditors from bailout troika amid fears of more public sector cuts ... Only hours before, the Greek prime minister, Antonis Samaras, had resolutely declared that Greece was not at war with the international bodies keeping the debt-stricken country afloat. But in scenes not witnessed since the beginning of Greece's economic crisis, auditors from the European Union and International Monetary Fund came face-to-face with the full force of anti-austerity anger as protesters in Athens jeered, heckled and stopped them from leaving the finance ministry." Continue reading →

Continue ReadingGreek Dilemma: A Product of the Dialectic

Greek police arrest one of their own while raiding neo-Nazi party’s offices

"A 45-year-old officer, who is working as the bodyguard of a Golden Dawn lawmaker, was detained during the raid at party offices in central Greece, a police source said. The links between Golden Dawn and police have come under intense scrutiny in Greece after the murder of an anti-fascist musician by an alleged member of the party. Further raids of Golden Dawn’s offices are expected in coming days, the police source said. Capitalising on a rise in social tension in the debt-stricken country, Golden Dawn was first elected to parliament last year with nearly seven percent of the vote, winning 18 seats out of an overall 300." Continue reading →

Continue ReadingGreek police arrest one of their own while raiding neo-Nazi party’s offices

A Rare Sign of Fiscal Sanity in France

"France’s state auditor urged the government Tuesday to redouble efforts to limit spending rather than increases taxes… He said 'the spiraling welfare debt was particularly abnormal and particularly dangerous.' During his first year in power, President François Hollande relied on large tax increases to plug holes in public finances, including social programs such as pensions, unemployment benefits and health care. But economic stagnation in 2012, coupled with a mild recession at the start of 2013, has waylaid the plan, while both companies and households are crying foul over what some have called 'a tax overdose.'" Continue reading →

Continue ReadingA Rare Sign of Fiscal Sanity in France

Dutch King tells citizens ‘to take responsibility’ as austerity implemented

"The king, who travelled through the streets of The Hague to address MPs and senators in an ornate horse-drawn golden carriage, said the transformation would be particularly noticeable in social security and long-term healthcare policies. The trade-dependent Dutch economy is in the fourth quarter of a recession and is struggling even as other European countries return to growth. The austerity measures will reduce Dutch households’ purchasing power by 0.25 percent in 2014. The budget announcement came with the government in free-fall in opinion polls. A poll said that the ruling Liberal-Labour coalition would lose around half its seats in parliament were elections held now." Continue reading →

Continue ReadingDutch King tells citizens ‘to take responsibility’ as austerity implemented

Hospital doctors join thousands protesting Greece’s austerity layoffs

"Greek doctors on Tuesday joined the latest wave of strikes to hit the debt-stricken country, with thousands of public sector workers protesting against government plans for lay-offs and redeployments. In Brussels, however, European Commission President Jose Manuel Barroso said during a visit by Greek Prime Minister Antonis Samaras that the unpopular policy of austerity was showing results in Greece and must be pursued to the end. Teachers from schools and universities, civil servants and lawyers are also on strike, in protest at reforms that Samaras’ centre-left coalition government is undertaking in return for international bailout funds." Continue reading →

Continue ReadingHospital doctors join thousands protesting Greece’s austerity layoffs

Greece axes vacation bonus for civil workers using computers

"Recession-wracked Greece plans to scrap a perk for its civil servants who enjoy an extra six days of holiday per year — if they use a computer at work. Greece’s civil service union, Adedy, said the perk stemmed from a decision in the 1990s to give employees 20 minutes off per day to protect them from eye damage from staring at a computer screen. This was then extended on an annual basis, resulting in six days off per year. Now in its sixth year of recession, Greece has been obliged to adopt austerity measures, including pay and pension cuts that have caused widespread resentment, in return for a massive EU-IMF bailout deal." Continue reading →

Continue ReadingGreece axes vacation bonus for civil workers using computers

Danger! Exploding Wealth Gap!

"We don’t just have an economic bankruptcy, but we also have a moral and ethical bankruptcy taking place on top of the threat of war, and the fact that most governments are taking away freedoms and personal initiatives by making them people dependent on state handouts. We also have the very dangerous situation where the rich are getting richer and the poor are getting poorer. Since 2009, the wealthiest 7% have seen their wealth increase by 28%, while the other 93% have seen their wealth decline by 4%. If you take the wealthiest 300 in the world, they have more wealth than the poorest 3 billion. This is very dangerous for a world which that will have more and more people going hungry." Continue reading →

Continue ReadingDanger! Exploding Wealth Gap!

US poverty rate steady at 15 percent, but ‘lower class’ is booming

"The share of those who identify themselves as 'lower class' – at 8.4 percent – now stands at its highest level in four decades, according to separate data released this week from the long-running General Social Survey (GSS). Just as surprising, the share of college graduates who describe themselves as lower class has jumped from 2.6 percent in 2002 to 5.8 percent in 2012. According to the GSS, only 55 percent of Americans these days believe things will get better for themselves and their kids – a rather paltry number for a country built on the notion that everyone has an equal chance to get ahead." Continue reading →

Continue ReadingUS poverty rate steady at 15 percent, but ‘lower class’ is booming