Tag Archives: Europe

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In the past 12 months, Greece hasn’t fired even one government worker

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From the Wall Street Journal.

Excerpt:

“The present government has done absolutely nothing during the last 12 months to speed up privatizations, reduce the public sector or open up closed professions,” Athanasios Papandropoulos, a leading economic analyst, told me recently in an interview. “In these 12 months it has not fired even one civil servant. The only thing it is doing is trying to tax the private sector out of existence. Why should we believe that they will do something different now?”

One commentator writing in the newspaper Kathimerini this week made the point even more forcefully: “Whereas more than 1,000 Greeks were losing their jobs in the private sector every day in August, the government was assuring civil servants with lifetime tenure that their job privileges were not in danger.”

Structural reforms have been repeatedly announced by Greek officials during the past. Yet nothing has happened. Greece’s plans tend to resemble Soviet Five Year Plans: They look good on paper but have absolutely no bearing on reality. Anyone in the government who tries to point this out is forced to resign. Economist Stella Balfousia, the head of the Greek Parliament budget office, had to tender her resignation after her office published a report contradicting the government’s official forecasts on debt and deficit.

Privatization is a case in point. Greece will have to raise some €1.7 billion by the end of September from the privatization program and €5 billion by the end of the year from the medium-term fiscal strategy program. Yet in the past year and a half not a single privatization has taken place. The explanation given for this is the low share prices of the listed companies. The real reason is probably that Greek politicians are loath to give up the system of spoils that they have long run through these enterprises, which are staffed by the party faithful in exchange for votes.

Would you like to know who has been running Greece lately? The current party in power is called the “Panhellenic Socialist Movement”. They won a majority in 2009. Surprised? Socialism never works.

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Greek men deprived of provider role commit suicide in record numbers

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From the Wall Street Journal, a reminder that recessions hit men the hardest. (H/T Tom)

Excerpt:

]Gross domestic product in the second quarter was down more than 7% from a year before, amid government spending cuts and tax increases that, combined, will add up to about 20% of GDP. Unemployment is over 16%. Crime, homelessness, emigration and personal bankruptcies are on the rise.The most dramatic sign of Greece’s pain, however, is a surge in suicides.

Recorded suicides have roughly doubled since before the crisis to about six per 100,000 residents annually, according to the Greek health ministry and a charitable organization called Klimaka.

[…]Suicide has also risen in much of the rest of Europe since the financial crisis began, according to a recent study published in the British medical journal The Lancet, which said Greece is among the hardest hit.Suicide has also risen in much of the rest of Europe since the financial crisis began, according to a recent study published in the British medical journal The Lancet, which said Greece is among the hardest hit.

[…]A suicide help line at Klimaka, the charitable group, used to get four to 10 calls a day, but “now there are days when we have up to 100,” says a psychologist there, Aris Violatzis.

The caller often fits a certain profile: male, age 35 to 60 and financially ruined. “He has also lost his core identity as a husband and provider, and he cannot be a man any more according to our cultural standards,” Mr. Violatzis says.

Heraklion, commercial center of the island of Crete, has had a spate of such deaths.

[…]Victims once were typically adolescent males or old people facing severe illness, and in normal times suicide cases often involve a mixture of factors including mental illness, says local psychiatrist Eva Maria Tsapaki.

But the economic crash has created a “new phenomenon of entrepreneurs with no prior history of mental illness who are found dead every other week,” she says. “It’s very unusual.”

Hans Bader had a recent post about Obama’s stimulus bill that is relevant.

Excerpt: (links removed)

A logical place to have financed road and bridge repairs would have been Obama’s $800 billion stimulus package. But the stimulus package was purged of most investments in roads and bridges, and filled instead with welfare and social spending, out of political correctness, after feminist leaders complained that building and repairing roads and bridges would put unemployed blue-collar men to work, rather than women.

Christina Hoff Sommers points out that “of the 5.7 million jobs Americans lost between December 2007 and May 2009, nearly 80 percent had been held by men,” because men “predominate in manufacturing and construction, the hardest-hit sectors, which have lost more than 3 million jobs since December 2007.” But when some administration officials floated the concept of “an ambitious . . . stimulus program to modernize roads, bridges, schools, electrical grids, public transportation, and dams” as a way of “reinvigorating the hardest-hit sectors of the economy,” “Women’s groups were appalled,” asking “Where are the New Jobs for Women?” and denouncing what they called “The Macho Stimulus Plan.”

As Sommers notes, the Obama administration quickly knuckled under to this pressure, replacing its recovery package with an $800 billion stimulus package that instead “skews job creation somewhat towards women” by spending money instead on social services like welfare that are administered mostly by female employees.

As a 2009 Associated Press story reported, “Stimulus Funds Go to Social Programs Over ‘Shovel-ready’ Projects.” A team of six AP reporters who have been tracking the funds find that the $300 billion sent to the states is being used mainly for health care, education, unemployment benefits, food stamps, and other social services.” Or, as another AP report put it, “Stimulus Aid Favors Welfare, Not Work, Programs.”

The stimulus package also repealed welfare reform, as Slate’s Mickey Kaus and the Heritage Foundation have noted. (In 2008, Obama ran campaign ads claiming to support welfare reform, even though he had sought to undermine welfare reform as an Illinois legislator. The stimulus package largely repealed the 1996 welfare-reform law.)

Men: don’t vote for this man in 2012.

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News

What is the future of the European Union?

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From the Wall Street Journal.

Excerpt:

In 1965, government spending as a percentage of GDP averaged 28% in Western Europe. Today it hovers just under 50%. In 1965, the fertility rate in Germany was a healthy 2.5 children per mother. Today it is a catastrophic 1.35. During the postwar years, annual GDP growth in Europe averaged 5.5%. After 1973, it rarely exceeded 2.3%. In 1973, Europeans worked 102 hours for every 100 worked by an American. By 2004 they worked just 82 hours for every 100 American ones.

[…]What is now happening in Europe isn’t so much a crisis as it is an exposure: a Madoff-type event rather than a Lehman one. The shock is that it’s a shock. Greece was never going to be bailed out and will, sooner or later, default. The banks holding Greek debt will, sooner or later, be recapitalized. The recapitalization will be borne by German taxpayers, and it will bring them—sooner rather than later—to the outer limit of their forbearance. The Chinese will not ride to the rescue: They know not to throw good money after bad.

And then Italy will go Greek. Europe’s crisis will lap on U.S. shores, and America’s economic woes will lap on Europe’s—a two-way tsunami.

America will survive this because America is a state. But as Bismarck once remarked, “Whoever speaks of Europe is wrong. Europe is a geographical expression.” The “fiscal union” that’s being mooted will never come to pass: German voters won’t stand for it, and neither will any other country that wants to retain fiscal independence—which is to say, the core attribute of democratic sovereignty.

What comes next is the explosion of the European project. Given what European leaders have made of that project over the past 30-odd years, it’s not an altogether bad thing. But it will come at a massive cost. The riots of Athens will become those of Milan, Madrid and Marseilles. Parties of the fringe will gain greater sway. Border checkpoints will return. Currencies will be resurrected, then devalued. Countries will choose decay over reform. It’s a long, likely parade of horribles.

Wow… things really are bad in Europe. And here, too.

Check out this editorial in the Washington Examiner.

Excerpt:

[A] congressional report released last week added another layer of explanation for the abject failure of Obamanomics since 2009. Along with the explosion of federal spending, Obama directed his appointees at key federal departments and agencies to embark on an unprecedented expansion of bureaucratic regulation. Thousands of new bureaucrats were hired at places like the Department of Heath and Human Services and the U.S. Environmental Protection Agency, and legions of costly new regulations soon poured forth.

The report by the House Oversight and Government Reform Committee headed by Rep. Darrell Issa, R-Calif., took aim at Obama’s “regulatory tsunami” and concluded that the pace and scale of new regulations threatens the ability of the government to fulfill even its most basic regulatory functions. Here’s how the congressional panel summarized its conclusions:

“The Obama Administration has created a regulatory environment that is suffocating America’s entrepreneurs’ ability to create jobs and grow businesses, … This regulatory tsunami has caused job creators to lock down at a time when we need them to expand. The committee has found that the problems created by this regulatory tsunami goes far beyond the cost of the regulations themselves, but also include breakdowns in the regulatory process itself that is having a severe impact on large and small businesses alike.”

Specifically, the panel found at least 219 “economically significant regulations in the pipeline, which if finalized, will impose costs of $100 million or more annually on the economy.” That’s a minimum of $219 billion in added costs to do business in this country over the next decade. Even worse, the panel found the Obama bureaucrats have already imposed 75 major new regulations that are projected to add another $380 billion in costs.

The Issa panel concluded that, as a result of this flood of new rules, “the regulatory process is broken” and that it is “being manipulated and exploited in an effort to reward allies of the Obama administration such as environmental groups, trial lawyers and unions.”

All we have to do to screw up this economy is do what the Europeans are doing – and we are.