houstonderek wrote:
Of course they're going to say that IN Europe. They don't want to see the troubles in the street Greece saw when the citizenry was told they couldn't expect government to do everything any more.
BUT...
Wasn't at all what they were saying at the G20. Whatever the "hot topic" is on an economic theory Europe never used and The States only partially used for eight years is, again, irrelevant. The fact is, Europe has been running on almost pure Keynesian economics since WWII. Friedman's theories...
I didnt' realize you were such an expert on european policies!
Three points:
1) yes, our various governments mean to scale down spendings and augment taxes, mainly by shutting down tax exemptions and superfluous investments, not by removing down social umbrellas during an economic storm. THAT would be sheer idiocy, leading straight to meltdown.
Our "social welfare" is what protected us from the full impact of the current financial crisis. So again, with some exceptions (czech republic, for instance), the current trend is to reinstate it. Citizens on welfare can still participate in the economy; hobboes can't.
2) we have newspapers too, so we know what was said in Toronto, and are well acquainted with the notion of double talk, thanks! :)
I agree that in Europe, only some countries (UK, Ireland) truly went for "reaganomics" (or "thatcherism", as it is called here). It's no coincidence that they were the most badly struck by the financial crisis.
Iceland (which is not part of the UE) turned itself into a banking haven... and went bankrupt last year.
3) where did you get the idea that our overall population was shrinking ? The UE counts 500M inhabitants in 2009, with a slower growth rate than the USA, but still a growth rate. I know that among neocon circles it's trendy to talk about the "Old Europe", but it's not litterally true.
In fact you have a wide spectrum, with Germany at one end (shrinking population) and France + UK at the other (growing population).
If I may, I add that one billionnaire doesn't have the same positive impact on the economy than an thousand middle class families. You have to cover basic needs only once, and buying a fifteenth house or a third yacht quickly becomes stale. So, excess money is hoarded and used to make more money, which in turn widen the gap between the super-rich and the rest of the population, which ultimately leads to social unrest, in a well-known historical pattern.
Also, for one self-made Bill Gates you have hundreds of "sons of", whose only merit was to be well born, on top of a big heap of money.
So, taxes are also a way of enforcing social stability. Wealth would otherwise tend to pool in private hands.
Yes, you can call me socialist if you want... We are used to it. :D