Tag Archives: Recession

News

Standard and Poor’s cuts credit ratings for nine European Union countries

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From CNBC.

Excerpt:

Standard & Poor’s downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday 13th for the troubled single currency area.

[…]S&P lowered its long-term rating on Cyprus, Italy, Portugal and Spain by two notches, and cut its rating on Austria, France, Malta, Slovakia and Slovenia by one notch.

The move puts highly indebted Italy on the same BBB+ level as Kazakhstan and pushes Portugal into junk status.

The credit-rating agency affirmed the current long-term ratings for Belgium, Estonia, Finland, Germany, Ireland, Luxembourg and the Netherlands.

[…]The credit-rating agency put all 14 euro-zone nations — Austria, Belgium, Cyprus, Estonia, Finland, France, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, and Spain — on “negative” outlook for a possible further downgrade.

Germany was the only country to emerge totally unscathed with its triple-A rating and a stable outlook.

A negative outlook indicates that S&P believes there is at least a one-in-three chance that a country’s rating will be lowered in 2012 or 2013.

It’s gotten so bad that Greek families are abandoning their children, and ordinary medicines like Aspirin are in short supply.

Greece is a socialist country

Why is this happening to Greece?

Well, Greece elected a socialist majority in 2009, and the socialist party was in power from 1981 to 1989, 1993 to 2004, and now 2009 to 2012.

Excerpt:

The Panhellenic Socialist Movement, better known as PASOK, is a Greek centre-left political party and the current majority party in the Greek Parliament. In 1981 PASOK formed the first socialist government in Greece’s history, and subsequently governed the country for most of the 1980s, 1990s and early 2000s. PASOK served as the main opposition party between 2004 and 2009. It is a member of the Party of European Socialists and the Socialist International. In the European Parliament it has 8 out of 22 Greek MEPs. On 31 January 2006, the party’s president, George Papandreou, was elected President of the Socialist International, the worldwide organisation of social democratic, socialist and labour parties. Following the 2009 legislative election, PASOK became the majority party and Papandreou became Prime Minister.

The Wall Street Journal explains what the socialists in Greece have been doing lately.

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.

I saw that Zero Hedge posted recently regarding the massive withdrawal of deposits from Greek banks.

Excerpt:

The year is not over yet, and already Greece’s banks have lost €36.7 billion of their deposit base in 2011, and a whopping €64.6 billion since the beginning of 2010, which is down from €233 billion to €173 billion in under two years. In October another €3.5 billion was withdrawn from Greek banks and likely either redeposited somewhere deep in the heart of Switzerland, or converted to various inert metals and buried somewhere in the back yard. The good news: the outflow is just over half of October’s record €6.8 billion. The bad news: at this rate of outflows, Greek banks will have zero deposits in around 4 years. Which at the end of the day is all the matters, because while the Troica can keep funding capital shortfalls indefinitely, all faith in the country’s banks has now been lost and Greece is officially a zombie economy. The fact that the country’s deficit as a % of GDP is about to be re-revised even higher is no longer even meaningful: the Greek economy and its banking sectors are now officially dead. We merely feel bad for anyone who still has cash in banks as, just like gold in 1930s America, any residual cash may soon be “sequestered” for national security purposes. After all there are bankers who need record bonuses, and Military sales from Europe and the US that have to proceed using what will likely soon be “commingled” deposit cash.

Greece is a socialist nation. And they are reaping the rewards of socialism. You cannot spend your way out of debt. You cannot create jobs by taxing job creators. You cannot create wealth by punishing those who create wealth.

Since Barack Obama was elected, we have been running deficits of about $1.3 trillion dollars each year. The last Republican deficit under Bush and Boehner was $160 billion dollars. We made a mistake and we elected a socialist, and now we are Greece – just a little less far down the road to serfdom.

News

Pew Research: U.S. marriage rate slumps to a record low

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Marriage and family
Marriage and family

UPDATE: Welcome, visitors from IOwnTheWorld. Thanks for the link! Readers should check out John Hawkins’ list of the top 40 conservative blogs for more great blogs!

ECM sends me this depressing article from the BBC.

Excerpt:

Barely half of Americans – a record low – are currently married, according to a Pew Research Center analysis of Census data.

Just 51% of adult Americans are married, compared with 72% in 1960.

The median age of first marriage has also hit a new high, of 26.5 for brides and 28.7 for grooms.

Pew said the number of adults co-habitating, single-person households and single parents had meanwhile increased in recent decades.

The study found that 20% of adults today aged 18 to 29 are married, compared with 59% in 1960.

It is unclear whether they are delaying matrimony or abandoning it altogether.

The analysis also found the number of new marriages in the US had declined by five percentage points between 2009-10.

This may not necessarily have been caused by the economic downturn, since a similar trend has continued in Europe regardless of business cycles.

Pew, a nonpartisan think tank and polling organisation, found the percentage of those Americans who have been married at least once had declined as well – 72% in 2010, from 85% in 1960.

If the trend persists, in a few years less than half of Americans will be married, Pew said.

I think that there are many causes for this problem. One of them has to be that the recession has hit men harder than women, and it is harder for a man to contemplate marriage when he isn’t the provider. A second reason is that the expansion of government makes it less important for women to men to fit the provider role, and men sink to those expectations and concentrate on other things that women want. A third reason is the men are performing poorly in school and earning fewer degrees, probably for the reasons that Christina Hoff Sommers explained in “The War Against Boys” – i.e. – feminism in the schools. A fourth reason would be the decline of prestige associated with marriage – men marry more when they get respect from their wives and society as a whole for doing something challenging and difficult. A fifth reason would be feminism’s drive to push premarital sex as something natural and normal to women – if women offer premarital sex to men as a form of recreation, then men have a big disincentive not to marry – they can already get the sex without having to commit for life to one woman. Furthermore, I don’t think that men feel comfortable about marrying a woman with a lot of previous sex partners – men know, and research confirms, that the higher number of prior sex partners is a huge risk of divorce. A sixth reason is that men’s incomes are taxed more and more, so that the government has more and more authority to interfere with his leadership – e.g. – a man cannot afford to select a private school or a religious school because the government takes the money and he is left with a politicized, failing public school that doesn’t accomplish the goals he wants for his children. A seventh reason would be that divorce is very bad for men’s finances – men have to pay alimony and child support, too.

I was chatting about this post over with ECM, and he said that the easy availability of pornography was another cause for the decline of marriage.

I wrote a longer, snarkier post about the decline of marriage here.

Commentary

Irony: the young men who voted for Obama now suffer from record unemployment

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This article from the Wall Street Journal explain why men are in decline. (H/T Mary, Tom)

Excerpt:

Few groups were hit harder by the recession than young men… The unemployment rate for males between 25 and 34 years old with high-school diplomas is 14.4%—up from 6.1% before the downturn four years ago and far above today’s 9% national rate. The picture is even more bleak for slightly younger men: 22.4% for high-school graduates 20 to 24 years old. That’s up from 10.4% four years ago.

[…]The share of men age 25-34 living with their parents jumped to 18.6% this year, up from 14.2% four years ago and the highest level since at least 1960, according to the Census Bureau.

Suzanne Venker comments on the consequences of this data for women for National Review.

Full text:

New data from the U.S. Census Bureau shows the percentage of men between the ages of 25 and 34 living at home rose from 14 percent in 2005 to 19 percent in 2011. Women, on the other hand, are doing just fine. Not only do they dominate today’s college campuses, they have little trouble staying away from mom and dad’s place. That’s because women are flourishing in the workforce while men are not. Writers and pundits blame this phenomenon on the economy, but the trend reflects a much larger sociological problem. America is in the midst of a sea change: Never before has it been more difficult for men and women to find their way to one another, settle in for the long haul, and build strong families together.

To read about it, you’d think the entire mess is out of our hands. You’d think the circumstances involving the roles of men and women in society have happened to us, rather than the other way around. The truth is that we created this new world — and while we may not be able to undo it, we can certainly stop the freight train from running off the tracks.

Hardly a day goes by that we aren’t made aware of this heartbreaking reality. It is so acute we now have not one but six new television series dedicated to men’s social demotion. In these programs, husbands are made to look like fools — while the wives wield a power so ugly it’s no wonder marriage has become so elusive. The modern generation has been sold a bill of goods about human nature, and the result is that men now have no idea how to be men. Why? Because women won’t let them.

There is a large and powerful group of women who see this shift in gender roles as a good thing. Hanna Rosin’s provocative piece in The Atlantic, called “The End of Men,” and Kate Bolick’s new piece “All the Single Ladies” (which may now become a TV series) make light of the demise of masculinity and the role men once played in society. They represent the kind of movers and shakers who help lead the feminist fight. Pointing to the latest statistics about men, they’d be likely to respond, “See how hopeless men are? Everything we’ve been saying about men all these years has proven to be true.”

But the laugh will be on them — if not for their own families, then for their children’s. The feminist policies that were put in place to help women flourish outside the home have suffocated men’s opportunities for economic self-sufficiency. In short, men’s desire to be good workers and family providers has been undermined. This is more than unfortunate; it is a loss of catastrophic proportions, for it is men’s consistent, full-time, year-round work that women depend on in order to live that ever-coveted “balanced life.” What too many women don’t understand (because they’ve been unduly influenced by feminist groupthink) is that male nature is ultimately beneficial to them, for women continue to put family — not career — at the center of their lives and are thus dependent on men to pick up the slack at the office.

It is a dangerous thing to create a society of frustrated young men. Feminists have no idea what a can of worms they’ve created — and what it’s about to do to our nation.

I think if we want men to marry, not only do we have to ask why the recession is affecting men disproportionately, but why the education system isn’t working for boys. We need to ask whether men learn better from female teachers or male teachers. We need to ask whether boys learn better in all-boys schools or in co-ed schools. We need to ask whether the promotion of sex education and contraception, which produces freely available sex, is the best way to encourage young men to prove themselves to women by trying hard to fit the traditional roles of protector, provider and moral/spiritual leader. We need to ask whether the denial of male-female differences encourages men to take on traditional male roles, and whether women are encouraged to prefer men who take on those roles. We need to ask whether our energy and economic policies favor job creation in areas dominated by men. We need to ask whether stimulus programs should be slanted towards industries dominated by women.  We need to ask whether affirmative action for women in education and at work helps men to be able to provide for a family. We need to ask whether men are well-served by no-fault divorce laws and biased domestic violence laws that promote false charges – especially during custody hearings. And lastly, we need to ask whether church serves men when it accepts or rejects postmodernism, anti-intellectualism and moral relativism.

But can’t we just tell men to “Man Up”?

The answer to the discincentives facing marriage-minded men is not a lazy, ignorant pronouncement for men to “Man Up”. That doesn’t solve any of the problems that cause men not to marry.

I think the desire of certain people to remove every incentive and capacity for men to perform as husbands and fathers – and then to nevertheless demand they marry and take on the traditional roles of men anyway without incentives or capacities – is the height of narcissism. Men are people too – we are not inanimate objects. We are not sperm donors and wallets. And if society decides to go in a direction where the traditional roles of men are replaced with  government social programs funded by high taxes and deficit spending, then marriage will die in this society.