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I... Don't know why you think that changes what JFC said.
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German unemployment rate falls to record low 'despite' budget surpluses
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I... Don't know why you think that changes what JFC said.
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He said "The money has to come from somewhere. And the worst possible scenario is that it comes from increased consumer debt."
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BETWEEN THE LEFT AND THE RIGHT
Before leaving office, Prime Minister Schroeder did Germany a great favor in the early 1990s. He "deconstructed" the barriers around employment that had been erected to supposedly "protect" it. It took two further years, but the results were astounding. Germany recovered itself to become the main economic pillar of the EU-community that it is today.
France is in exactly the same position today as it was in the 1990s, nothing has changed. It needs a legal remake of its Labor Laws that constrain job-creation. The Socialists, of all people, have tried to modify "very slightly" a highly rigid labor law, and what happened! First the students started demonstrating, then the union-blockages were mounted. And the country today is up in arms with major work-stoppages.
Which just goes to show ya how stoopid a people who cling to outdated notions can get in a world that is advancing a light-speed. The unemployment rate in France is twice that of Germany for comparable total population sizes.
The present Socialist Party president (Hollande) has shown how inept an intellectually closeted government be in maintaining an outdated idea of how a market-economy works. They still think it can be "controlled/manipulated" from above by the state. Worse yet, there is no indication either that the Right in France knows what must be done. Should the Right win next year the Presidency, they will only come up against a Brick Wall of political intransigence should they try to change the Labor Law that presently installs the French population in its long-term unemployment.
Even some Social Democracies, when they go overboard, can destroy the well-being they intentionally seek out of goodwill. Compassion is just not enough nowadays.
It takes real action - often difficult to assume - to move a country anchored in seemingly benevolent but outdated notions of Social Democracy; but a lack of willingness at formulating the right means to implement it.
Between the Right and the Left in a Social Democracy - the truth is always to be found somewhere in between ...
PS: It will never cease to amaze me how a people can fight and die to free themselves from a Nazi hegemony, only to incarcerate themselves in yet another on the Left that has grown totally inept in any modern nation today. It is impossible to "regulate employment" except beyond some rudimentary protections against slave-labor. But such inanities as lowering the 40-hour week to 35 at the same pay (by a Socialist government in 2000) was wholly stoopid.
Before leaving office, Prime Minister Schroeder did Germany a great favor in the early 1990s. He "deconstructed" the barriers around employment that had been erected to supposedly "protect" it. It took two further years, but the results were astounding. Germany recovered itself to become the main economic pillar of the EU-community that it is today.
France is in exactly the same position today as it was in the 1990s, nothing has changed. It needs a legal remake of its Labor Laws that constrain job-creation. The Socialists, of all people, have tried to modify "very slightly" a highly rigid labor law, and what happened! First the students started demonstrating, then the union-blockages were mounted. And the country today is up in arms with major work-stoppages.
Which just goes to show ya how stoopid a people who cling to outdated notions can get in a world that is advancing a light-speed. The unemployment rate in France is twice that of Germany for comparable total population sizes.
The present Socialist Party president (Hollande) has shown how inept an intellectually closeted government be in maintaining an outdated idea of how a market-economy works. They still think it can be "controlled/manipulated" from above by the state. Worse yet, there is no indication either that the Right in France knows what must be done. Should the Right win next year the Presidency, they will only come up against a Brick Wall of political intransigence should they try to change the Labor Law that presently installs the French population in its long-term unemployment.
Even some Social Democracies, when they go overboard, can destroy the well-being they intentionally seek out of goodwill. Compassion is just not enough nowadays.
It takes real action - often difficult to assume - to move a country anchored in seemingly benevolent but outdated notions of Social Democracy; but a lack of willingness at formulating the right means to implement it.
Between the Right and the Left in a Social Democracy - the truth is always to be found somewhere in between ...
PS: It will never cease to amaze me how a people can fight and die to free themselves from a Nazi hegemony, only to incarcerate themselves in yet another on the Left that has grown totally inept in any modern nation today. It is impossible to "regulate employment" except beyond some rudimentary protections against slave-labor. But such inanities as lowering the 40-hour week to 35 at the same pay (by a Socialist government in 2000) was wholly stoopid.
joG
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There is a saying that the path to Hell consists of a thousand small steps of good intention.
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Aint nuthin' wrong with that for as long as a people and a country know how to live within their means and share equitably but not equally.
When there exist in a nation far too many of the brutally selfish, as in that of Uncle Sam's. Who think that a market-economy is a game with only one rule: "The Sky Is the Limit!". Gamers then will try by all means (both good and bad) to achieve that maxim. And they will motivated to do so by ridiculously low levels of upper-income taxation.
Nothing brings out the avarice in a people like lowering taxes on the Already Rich and the Wannabee Rich - for whom there is never enough and damn all the rest. For the truth in that maxim see how it happened not once but twice in America, here:
Tell me that the wholesale lowering of upper-income taxation DID NOT provoke the Great Depression of the 1930s and the Great Recession following 2010.
Ipso facto, what happens is a Great Recession and then GR2 and then GR3 ... etc., etc., etc. ... ad nauseam. In manner for which it is impossible to comprehend why a people have learned no-lessons-whatsoever from history.
Stoopid is as stoopid does ... (Forrest Gump)
NB: From the bible; Hosea 8:7, "They sow the wind and reap the whirlwind."
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'Germany's unemployment rate fell to a record low in May, while the jobless rate across the eurozone fell to 10.2% in April.
The unadjusted rate in Germany declined to 6% from 6.3% in April, the Federal Labour Office said.
That was the lowest level since German reunification in 1990.'
German unemployment rate falls to record low - BBC News
But, this cannot be as they are running fiscal surpluses:
Germany Government Budget | 1995-2016 | Data | Chart | Calendar | Forecast
Thoughts?
much like our economy:
high employment
low GDP growth
low or declining income
but we have big deficits and they don't
but we have slightly higher work force participation than Germany.
I see nothing to learn from the German budget surplus, but must add, they are very very lucky to be doing even as poorly as they are doing. I hope one day people decide they are fools for spending $1000's extra to drive empty status German cars like Mercedes BMW Audi Porsche.
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And you think the surge in private borrowing under President Bush 2 was a good thing ...?
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I said no such thing. Just his argument can't be true. We ran huge deficits and private borrowing surged as well. Quiet the opposite of what he claims.
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This is just accounting, AE. Money doesn't just appear and disappear to suit your economic ideology. There are only so many places where demand can come from. Sometimes it's difficult to discern exactly where money is coming and going, based on the data available, but you can count on accounting. It's right there in the name.
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And JfC.. you can't claim "...and we ran up massive personal debt during that period, too (which is unusual). And it led us into the 2001 recession.
The money has to come from somewhere. And the worst possible scenario is that it comes from increased consumer debt."
When in during the Bush years both Government borrowing and Private borrowing increased dramatically and was offset by FDI (Foreign sector). In a span of 4 years US ran a surplus with private borrowing to running a deficit with private borrowing. Both ending up in recessions.
That's all I am saying.. in Economics you'll find sometimes it never matches up with theory.
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How is that the opposite of what he claimed ?
If public spending goes down, and net exports are unchanged, then economic growth can only come from private sector borrowing.
Economic growth that occurs from private sector borrowing is like pulling future income in, it's not sustainable.
He's not claiming that private sector borrowing can't increase with a public sector deficit. If net exports are less than public deficits then the private domestic sector would contract without private sector borrowing. As long as your trade deficit is bigger than your public deficit, you're still pulling money out of the domestic private sector.
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Only if you are committed to a ****ty theory.
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Econ 101 S=I. Saving equals investment equals economic growth. Private sector borrowing is the best by far because it is subject to free market discipline. Waste is minimized. Now do you understand?