Austerity

Government-Run Bridges: Guaranteed Erosion

"Many fracture critical bridges were erected in the 1950s to 1970s during construction of the interstate highway system because they were relatively cheap and easy to build. Now they have exceeded their designed life expectancy but are still carrying traffic — often more cars and trucks than they were originally expected to handle. The Interstate 5 bridge in Washington state that collapsed in May was fracture critical. Cities and states would like to replace the aging and vulnerable bridges, but few have the money; nationally, it is a multi-billion-dollar problem. As a result, highway engineers are juggling repairs and retrofits in an effort to stay ahead of the deterioration." Continue reading →

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Young Greeks Helping Each Other to Combat Crisis

"The political class may have set the rules, but almost everyone adhered to them. Now the game is over, and there is no money left for fakelaki and rousfeti, corruption and nepotism, two basic principles of Greek political life until now. Suddenly there is room for those who want to set up new rules, and who want change and more cooperation. Some 3,000 initiatives were established throughout Greece in the last three years. They all have the same goal: to do things better than before. There are food cooperatives, community gardens, social pharmacies and neighborhood assistance programs for the poor. In Crete alone, there are now five alternative currencies." Continue reading →

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‘A tide of squatters’ spreads in Spain in wake of foreclosures

"If the organization known as Okupatutambien, or 'Become a Squatter Too' has its way, the country will see a mass expropriation of abandoned or repossessed property to resolve the housing crisis. According to a 117-page “Squatters’ Guide” published on the Internet by the group, there are 3 million empty homes in Spain, or about 100 for each of the 30,000 homeless. The guide advises would-be squatters on how to stake out, enter and remain inside properties, leaving the rightful owner and authorities powerless to evict them. It also offers free counseling from an office in downtown Madrid on how to siphon water and electricity from municipal supplies and how to deal with law-enforcement officers." Continue reading →

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Most people expect to be worse off than parents – except U.S., Chinese

"A 'squeezed generation' of middle-aged Europeans are convinced they are going to be poorer in retirement than their parents, according to a global survey that found the Chinese the most confident about their future and the French, Germans and Spanish the most pessimistic. Americans are the most sure they will enjoy their retirement, the British are among the most likely to worry about being lonely, while individuals in Eastern European countries are uniformly morose about their future. In the survey, 43% of Japanese said they associate retirement with 'insecurity' compared to just 13% in China and the US, and 15% in the UK." Continue reading →

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The Three Types of Austerity

"Reading the financial press, one gets the impression there are only two sides to the austerity debate: pro-austerity and anti-austerity. In reality, we have three forms of austerity. There is the Keynesian-Krugman-Robert Reich form which promotes more government spending and higher taxes. There is the Angela Merkel form of less government spending and higher taxes, and there is the Austrian form of less spending and lower taxes. Of the three forms of austerity, only the third increases the size of the private sector relative to the public sector, frees up resources for private investment, and has actual evidence of success in boosting growth." Continue reading →

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Scandinavian Welfare States Realize Too Many Handouts Are Destructive

"It’s hardly radical libertarianism to reduce unemployment benefits from four years to two years, but it is rather significant when even politicians realize that it’s not good – as illustrated by these powerful cartoons – to lure people into the wagon when nations need more people pulling the wagon. It's a bit depressing that Denmark actually ranks higher than the United States in the most recent Economic Freedom of the World rankings. Yes, their welfare state is too big, their tax system is a nightmare, and they are saddled with one of the world’s most expensive bureaucracies, but Denmark has ultra-free market policies in other areas." Continue reading →

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Entire School District Shuts Down — Out of Money

"Michigan’s Buena Vista — 'Good View' — school district in Michigan shut down this week. It is out of money. Some teachers say they will teach for free. But will all of them do this? In any case, it’s illegal. Michigan doesn’t allow it. The state cut funding by $3 million, due to declining enrollment. The nearby Pontiac School District is close to bankrupt. It can’t meet payroll. Two districts in Arkansas are bust. The Philadelphia district in Pennsylvania is begging for money from the state. We are in an economic recovery. What happens in the next recession?" Continue reading →

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‘Let’s tax the sun’: new law shocks world press

"A new tax on solar power introduced two weeks ago by the Spanish government has been described as 'ludicrous' and 'stupid' in two leading international publications. Business Spectator interviewed people who plan to ignore the new law, including Sergio Pomar, chief executive of energy-efficient installation firm INEL. He said: 'If I spend €600 to install solar panels and get fined €6 million let the judge decide.' Private individuals who fail to hook their solar panels up to the national grid to be metered and taxed could face fines of up to €30 million ($40 million) under the new law. Some homeowners have removed their solar panels rather than face fines of up to €30 million." Continue reading →

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The Recession That Never Ended: 2008-2013 (and Counting)

"Huge leaps in the income and wealth of the top 5% mask the decline of income and wealth of the bottom 95%. Average all wealth and income and it appears that the economy is expanding to the benefit of all, when it fact only the top 5% have escaped the recession; the recession never ended for the bottom 95%. An even better way to create an illusory expansion is to simply not measure trends that would reveal a deepening recession. For example, what percentage of student loans are purposefully taken out as a substitute for income, i.e. used to pay basic living expenses rather than education?" Continue reading →

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The Trick to Suppressing Revolution: Keeping Debt/Tax Serfdom Bearable

"In a way, a belief in the value, transparency, trust and reciprocity of the System is like a religious belief. The converts, the true believers, are the ones who work like crazy for the company or the service. And when the veil of illusion is tugged from their eyes, then the Believer does a reversal, and becomes a devout non-believer in the System. He or she drops out, moves to a lower position, or 'retires' to some lower level of employment. At what point do people choose to opt out of debt/tax-serfdom? What triggers their decision to renounce debt, go off the financial grid, and escape serfdom by fashioning a low-cost lifestyle in the cash economy?" Continue reading →

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