Greece shuts down its bloated, money losing ERT public television/radio network. “Problems with Greek democracy are not the reason that ERT was shut down. ERT was an extravagant public company. Many, though not all, employees were hired under suspicious conditions, due to favoritism and nepotism, and receiveddisproportionately large wages (8000 Euros per month through the financial crisis and 13000 Euros per month before).”
Taki (who is Greek) offers some pungent assessments of his home country’s continual crisis.
In Europe, the law is seen is “an obstacle rather than a foundation.”
Last night was the night when we, as Americans, set aside our political differences and came together to watch Sharknado. But time hurries on! Time for another Friday LinkSwarm:
50+ years of Democratic rule turn Detroit into a failed city.
Thomas Sowell: The Left refuse to grapple with the issue of Evil. “Disarmament means making decent, law-abiding people more vulnerable to evil people.”
ObamaCare mandate delayed. “It has become a trope among defenders of the law that its flaws are the fault of Republicans because they don’t want to fix them. They must have seen their own peculiar version of Schoolhouse Rock!: The first step in making a law is jamming a massive bill down the opposition’s throat. The second is whining that the opposition won’t fix problems inherent in the bill jammed down their throats.”
The ongoing European Debt Crisis hasn’t ended, it’s merely undergoing a summer hiatus while the various bankers and Eurocrats involved in the shell game take their customary 8 week vacations. As such, expect a new round of crisis headlines to come rolling in during the fall.
Remember: The purpose of the shell game is to let insiders unload their bad debts onto taxpayers. (Look how it was done in Ireland for pointers.) The shell game will continue as long as the insiders can get away with buying off restive electorates with an unsustainable cradle-to-grave welfare state.
Europe’s present is our future.
Once again, Greece is being given money to pretend to reform. Look for more fake austerity, and another bailout in six months.
“Greece will never repay the money it’s been lent to ‘save’ it. The current debate over whether Greece has done enough by way of reform, tax hikes and spending cuts to have earned the next tranche of bailout funds is largely beside the point. If Greece is cut loose, or walks away, its euro-zone creditors will lose their money. The Greeks and the Germans are surely both aware of this. They’re also aware that Greece’s external debt position is far worse than when the bailouts began—when its debt stood at a mere 129% of GDP—and that any talk of debt sustainability in Greece has become a joke.” It’s now at 157% of GDP.
Predictably, Greek unions respond to more fake austerity and staff cuts by extending strikes.
Europeans realize that their governments are corrupt. Those who think they’re not corrupt? “In Spain that number is just 8 percent. In Italy, it’s 13 percent. And Greeks and Portuguese have the least trust in the world regarding their governments’ efforts: Just 1 percent of respondents say their government is making strides against corruption.”
And just how corrupt is Greece? “Politicians and journalists are viewed as on the take by most Greeks with 50 percent also saying they’ve had to bribe public officials to get services.”
The EU is preparing a banking union bill. No word on whether it will require depositors to take haircuts like those in Cyprus in the event of a bank failure.
Italy could be forced to beg for a bailout in six months.
UK actually proposes to roll back some 35 EU laws. This may be the first sign that Cameron’s wet Tories have actually noticed how effectively Nigel Farge’s UKIP is eating into their base…
Funny how three day weekends where you have to work Friday always leave you with more stuff you need to do rather than less. So here’s the Friday LinkSwarm on Monday.
“Barack Hussein Obama: You Killed the Arab Spring.” And other anti-Obama signs from Egyptian protesters.
Thomas Sowell: “The political left’s welfare state makes poverty more comfortable, while penalizing attempts to rise out of poverty. Unless we believe that some people are predestined to be poor, the left’s agenda is a disservice to them, as well as to society.”
“All the net growth in employment among the working-age (ages 16–65) over the last decade went to immigrants (legal and illegal). Since 2000 the total number of immigrants employed is up by 5.3 million, while native-born employment is down 1.3 million.”
“Modern liberalism, among other things, is a psychological state, in which very-well-off Americans find ways through their income and privilege to be exempt from the ramifications of their own ideologies, while adopting causes and pets that exempt them from guilt over their own status and limitless opportunities. Judging by their concrete actions, they are indifferent to the poor whom they romanticize at a safe distance.”
Disgraced former NY governor to run for New York City comptroller…against his former madam. Gee, the Eliot Spitzers and Anthony Weiners of the world must really miss all the fawning and graft.
UT ranks 26th on the list of top 100 universities in the world. Don’t know how accurate that ranking is, but it must rankle Yalies to rank a mere 10th…and behind Harvard!
How does a Western cost $250 million to make, even after Johnny Depp has taken a pay cut? Unless half the budget went to cocaine?
The season has switched from not Summer to Summer here in Texas, so here’s a hot, humid LinkSwarm:
In Europe, youth unemployment is climbing to scary, stratospheric heights. So scary I’m going to swipe their chart:
Notice how countries that have kept their deficit spending relatively low (Germany and even the UK, where deficits has at least decreased under Cameron) are doing much better than the PIIGS. Again, Austerity hasn’t failed in Europe, it’s been declared difficult and left untried.
Harry Reid calls his close personal friend and business associate Harvey Whittemore (and his wife) “wonderful people.” Oh, and Whittemore is now also a convicted felon.
Eric Holder: Obama’s sin eater. “The attorney general has done little in his tenure to protect civil liberties or the free press. Rather, Holder has supervised a comprehensive erosion of privacy rights, press freedom and due process. This ignoble legacy was made possible by Democrats who would look at their shoes whenever the Obama administration was accused of constitutional abuses.”
California’s political economy is based on high tax rates; rent control and growth controls; inflated housing values, but relatively low property tax rates because of Proposition 13; mandatory inclusionary housing and more jobs for teachers, tax assessors, subsidized solar power technicians, urban planners and environmentalists. Its immigration policies are mostly the symbolic “Dream Act,” anti-deportation laws and “sanctuary cities.”
Texas’ economy is based on low or no business and income taxes, no rent control, few growth controls, higher property tax rates based on lower housing values, inclusionary old inner cities by markets, and tax incentives for private sector jobs. Only El Paso and Houston have sanctuary city policies. An anti-sanctuary city bill died in the Texas legislature in 2011.
California has passed anti-sprawl legislation to try to halt the out-migration from its older big cities. The results would have been miserable if international in-migration had not stemmed the outflow of population.
Texas has accomplished balanced in-migration into its older city centers where California has failed. The Texas incentive model is performing better than the California disincentive model as far as sustaining the center of its older big cities while Texas suburbs are booming at the same time. Texas is accomplishing what 75 years of public housing and lending policies could not in California: an older city core that is attracting a “return to the city” by domestic and international migration and concurrent suburban growth.
Read the whole thing.
And while we’re on the subject, this piece on the dynamism of Houston is worth reading as well.
Forbes makes the same point that I have made repeatedly: Austerity has not been tried and failed in Europe, it has been found difficult and left untried.
The official figures show that PIIGS governments embarked on massive spending sprees between 2000 and 2008. During this period, their combined general government expenditures rose from 775 billion Euros to 1.3 trillion – a 75 percent increase. Ireland had the largest percentage increase (130 percent), and Italy the smallest (40 percent). These spending binges gave public sector workers generous salaries and benefits, paid for bridges to nowhere, and financed a gold-plated transfer state. What the state gave has proven hard to take away as the riots in Southern Europe show.
Then in 2008, the financial crisis hit. No one wanted to lend to the insolvent PIIGS, and, according to the Keynesian narrative, the PIIGS were forced into extreme austerity by their miserly neighbors to the north. Instead of the stimulus they desperately needed, the PIIGS economies were wrecked by austerity.
Not so according to the official European statistics. Between the onset of the crisis in 2008 and 2011, PIIGS government spending increased by six percent from an already high plateau. Eurostat’s projections (which make the unlikely assumption that the PIIGS will honor the fiscal discipline promised their creditors) still show the PIIGS spending more in 2014 than at the end of their spending binge in 2008.
Remember: Real austerity is cutting budgets until receipts match outlays. In Europe this hasn’t been tried outside the Baltic states. Meanwhile, Japan has been trying Keynesian stimulus for two decades and has nothing to show for it but a mountain of debt.
Or take this abstract (I’m still working through the actual paper) from German Institute for Economic Research economist Georg Erber: “The core thesis of the paper is that taking a close look at the actual statistics available from Eurostat on the PIIGS-countries plus Cyprus, one finds little empirical evidence that the governments there have de facto reduced their total public expenditures.”
Keynesian pump-priming hasn’t worked in Europe. Could real austerity (i.e., cutting budgets until they’re balanced) work to restore growth in Europe (and here)?
Eurozone shrinks for sixth consecutive quarter and no one knows what to do about it. Well, that’s not true. I know what to do about it: Cut all budgets until they match receipts, reform the welfare state, and abandon the Euro. But I suspect Eurocrats would prefer another six quarters of shrinkage (at a minimum) before they’re willing to contemplate such heresy…
Republican in charge of Hispanic outreach in Florida switches to the Democratic Party. That’s some mighty fine staffing you’ve got going on there, Lou…
“It’s time for public employee unions to wake up and take a look around. Government services are shrinking, cities are crumbling, and they’re enjoying pay and benefit packages that many in the private sector would kill for. They need to give a little back…Because up and down the state of California, and beyond, public officials foolishly negotiated contracts they can’t pay for without taking a cleaver to basic services, including police and fire protection, park maintenance, street repair.”
California’s total government debt, at all levels, is estimated between $848 billion and $1.126 trillion. Funny how the word “trillion” crops up in reference to debt when Democrats are in charge of things…
The New York Timesall but comes out and says that the LA Times is an extension of the Democratic Party. Which is why both the MSM and the Left are panicking that it might be sold to the Koch Brothers.
In a rare spot of good news for California, their revenue are running just far enough ahead of schedule that they no longer need to make do with internal borrowing between state agencies. But I would suggest that this windfall will prove to be temporary…
Texas once again named the best state for business by CEO Magazine. And California was once again named the worst.
