23 May 12
Originally posted by TeinosukeIt isn't just two countries. Those were just two countries mentioned. You can throw other countries in there too:
Why do you think the failure of two countries to support their social safety nets invalidates the principle as a whole?
Italy, Portugal and Ireland
I suppose France has also had to make cut backs in it's social safety net too. I think there has been talk of cut backs in the UK as well.
23 May 12
Originally posted by EladarActually, the wealthier Eurozone countries, which incidentally also have the largest safety nets, now find that they can borrow money at unprecedented low yields, because investors are fleeing to "safe havens". So while Germany, Finland, and the Netherlands have significant deficits (though not as bad as the US) their debt burden is actually decreasing as old bonds with higher yields are replaced by new bonds with very low yields. A similar principle holds for non-Eurozone countries like Norway, Sweden and Denmark, who all have very good social security systems (although Norway is so rich in the first place mankind will probably go extinct before Norway runs out of money).
I think we are finding out that they can't. This is what Spain and Greece are finding out. The money from the rest of Europe will run out soon enough.
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23 May 12
Originally posted by EladarIn order to meet the austerity guidelines. It certainly wasn't an economic necessity.
It isn't just two countries. Those were just two countries mentioned. You can throw other countries in there too:
Italy, Portugal and Ireland
I suppose France has also had to make cut backs in it's social safety net too. I think there has been talk of cut backs in the UK as well.
24 May 12
Originally posted by EladarThe U.K has done three or four years of government spending cutbacks it is now realising that the the problem is at least as much about tax evasion on the part of the wealthy and large corporations.
It isn't just two countries. Those were just two countries mentioned. You can throw other countries in there too:
Italy, Portugal and Ireland
I suppose France has also had to make cut backs in it's social safety net too. I think there has been talk of cut backs in the UK as well.
24 May 12
Originally posted by EladarWould that be the Ireland that has one of the lowest personal tax rates in the developed world (and still lower corporation tax)?
It isn't just two countries. Those were just two countries mentioned. You can throw other countries in there too:
Italy, Portugal and Ireland
I suppose France has also had to make cut backs in it's social safety net too. I think there has been talk of cut backs in the UK as well.
http://upload.wikimedia.org/wikipedia/commons/3/36/Income_Taxes_By_Country.svg
Funny, a country cuts taxes and can't afford to meet its obligations to its citizens. What a shock!
Basically, when a country can't balance its books it has (in the long term) two choices. It can cut spending or it can raise taxes. Why don't you regard the latter as a reasonable option?
24 May 12
1 edit
Originally posted by EladarWell, sure. The Netherlands has recently passed a budget that consists of some spending cuts as well as a VAT rise, rise of the pension age and (temporarily) increasing taxes for the rich (which had foolishly been lowered during the surplus years of the late '90s and early '00s, a mistake that many European and North American countries made during that time).
You can't depend on lower rates forever and only a fool would say that our debt is going down because we've lowered our minimum payment. Eventually even countries run up so much debt that it has to make changes.
24 May 12
1 edit
Originally posted by KazetNagorraSo you are saying that financial problems (needs) did trigger the need for austerity?
It varies on a case-by-case basis. Spain, for example, was hit by a property bust, while Greece had a bookkeeping fraud scandal, with the government hiding deficits for many years.