Greek "austerity" finally kicking in? Just now 1st civil servant layoffs in 100 years

[glenn1]

Way to go Greece. Don't pull any muscles while you're letting go of a handful of the 29% of your workforce that works for the government while you're going around proclaiming “The problem is not its size,". Right, and I'm sure they have a good personality too.


http://www.csmonitor.com/World/Euro...ng-civil-servants-for-first-time-in-a-century

 

[fskimospy]

Way to go Greece. Don't pull any muscles while you're letting go of a handful of the 29% of your workforce that works for the government while you're going around proclaiming “The problem is not its size,". Right, and I'm sure they have a good personality too.

http://www.csmonitor.com/World/Euro...ng-civil-servants-for-first-time-in-a-century

Greece has already been engaging in ruinous austerity for years. Specifically mentioned in your article is how the public sector has already shed about 20% of its work force before this, so the idea that austerity is only now kicking in is of course untrue.

Also mentioned in your article, Greece's public sector work force is actually smaller than quite a few well functioning EU nations. The problem is not explicitly its size, but that workers are not well distributed due to old, badly functioning regulation.

 

[Greenman]

Greece has already been engaging in ruinous austerity for years. Specifically mentioned in your article is how the public sector has already shed about 20% of its work force before this, so the idea that austerity is only now kicking in is of course untrue.

Also mentioned in your article, Greece's public sector work force is actually smaller than quite a few well functioning EU nations. The problem is not explicitly its size, but that workers are not well distributed due to old, badly functioning regulation.

I'll never believe that a country can spend it's way out of debt. In the case of Greece, they don't have control of their currency. They can't print, they can't inflate, all they can do is borrow. Soon enough there isn't going to be anyone to borrow from. The problem will then solve itself.

 

[Doc Savage Fan]

http://www.theglobaledition.com/gre...civil-servants-to-enforce-austerity-measures/

Greek "austerity" in action.

 

[cubby1223]

Greece has already been engaging in ruinous austerity for years. Specifically mentioned in your article is how the public sector has already shed about 20% of its work force before this, so the idea that austerity is only now kicking in is of course untrue.

Also mentioned in your article, Greece's public sector work force is actually smaller than quite a few well functioning EU nations. The problem is not explicitly its size, but that workers are not well distributed due to old, badly functioning regulation.

Oh noes, cannot let someone speak positively of austerity! Cannot happen, must stop!

The size and spending amounts of government does not equate to private sector success or fail. However, private sector success or fail does have a large impact on how big government can be. Countries who manufacture products or provide services the world demands, the government can be bigger and spend more. Countries who do not manufacture products nor provide in-demand services, government must be smaller to reflect the reality of the conditions inside the country. Government only has so much impact on economic success, it's not a miracle cash-granting entity. There has to be an inflow of money to provide any outflow.

Are you still pushing what's essentially a one-size-fits-all government model?

 

[Genx87]

I'll never believe that a country can spend it's way out of debt. In the case of Greece, they don't have control of their currency. They can't print, they can't inflate, all they can do is borrow. Soon enough there isn't going to be anyone to borrow from. The problem will then solve itself.

That is really greeks problem is the inability to inflate their way out of the problem. Lying their way into the EU was the first step in this disaster. The second is spending like drunken fools being tied to a currency they cant manipulate.

 

[Incorruptible]

It's a good step in the right direction but they still have lots more to work out. More countries need to follow this and fire many of these useless government workers.

It's a shame people will attack austerity when it works.

 

[cubby1223]

The problem with Greece is Greece is a failed economy. They need to go bankrupt to erase their debt. But they cannot do so. Austerity or increased spending, the country is fucked.

The successful nations of Europe will forever have to give up their earnings to prop up Greece, similar to how, say, New York will forever have to pay to prop up Mississippi.

 

[fskimospy]

I'll never believe that a country can spend it's way out of debt. In the case of Greece, they don't have control of their currency. They can't print, they can't inflate, all they can do is borrow. Soon enough there isn't going to be anyone to borrow from. The problem will then solve itself.

This post is more instructive than you may realize. Basically right here you just said that regardless of evidence you will refuse to believe something. That basically encapsulates austerity advocates' position over the last few years.

It's become a religion. Scary stuff.

 

[fskimospy]

Oh noes, cannot let someone speak positively of austerity! Cannot happen, must stop!

That doesn't make any sense. My statement was that the OP's statement that austerity is 'finally' kicking in there isn't accurate, as the government work force had shrunk by about 20% in recent years.

The size and spending amounts of government does not equate to private sector success or fail. However, private sector success or fail does have a large impact on how big government can be. Countries who manufacture products or provide services the world demands, the government can be bigger and spend more. Countries who do not manufacture products nor provide in-demand services, government must be smaller to reflect the reality of the conditions inside the country. Government only has so much impact on economic success, it's not a miracle cash-granting entity. There has to be an inflow of money to provide any outflow.

Are you still pushing what's essentially a one-size-fits-all government model?

I don't remember ever pushing a one-size-fits-all government model. In fact, one of the primary problems with the EU is that they thought you could have a common currency between vastly different economies of this sort.

 

[amyklai]

I don't remember ever pushing a one-size-fits-all government model. In fact, one of the primary problems with the EU is that they thought you could have a common currency between vastly different economies of this sort.

The same argument can be made for the USA - the GDPs vary just as much and the economies are just as different as they are in the Euro zone.

 

[fskimospy]

The same argument can be made for the USA - the GDPs vary just as much and the economies are just as different as they are in the Euro zone.

I meant that in the scope of previous discussions here, it is that you cannot have a common monetary policy for such divergent areas without a common fiscal policy as well.

 

[amyklai]

I meant that in the scope of previous discussions here, it is that you cannot have a common monetary policy for such divergent areas without a common fiscal policy as well.

Do the single US states have a common fiscal policy as far as their own budgets are concerned?

 

[maddogchen]

"The first two civil servants were let go on Wednesday under a new law that speeds up the process – one, a policeman, for stealing debit cards, and the other for 110 days of unexcused absence."

seriously??? you needed a new law to fire these bums?

 

[fskimospy]

Do the single US states have a common fiscal policy as far as their own budgets are concerned?

The US as a whole is governed by a common fiscal policy, yes. Sure there is some state level autonomy, but in any given year there are massive fiscal transfers from state to state as a result of this common policy. (not to mention a common lender of last resort, etc)

The differing outcomes for struggling states vs. struggling European countries shows this the most clearly, if you're looking for more information. States like Florida and California were the recipients of massive federal transfers in the form of food stamps, welfare assistance, extended unemployment benefits, Medicaid dollars, etc after the housing crash, seriously propping up their economies. Countries in Europe do not have this sort of common fiscal policy.

 

[Doc Savage Fan]

"The first two civil servants were let go on Wednesday under a new law that speeds up the process – one, a policeman, for stealing debit cards, and the other for 110 days of unexcused absence."

seriously??? you needed a new law to fire these bums?

That's nothing...their government is FUBAR in so many ways...some people even get bonuses for showing up to work on time!

Greece has huge issues that go well beyond recent austerity measures...so, bottom line, that "austerity doesn't work" dog don't hunt. Greece is a corrupt welfare state in a death spiral.

http://www.thestar.com/business/2010/04/28/in_greece_you_get_a_bonus_for_showing_up_for_work.html

 

[Screech]

I don't really see any way for greece to get out of the debt spiral of doom at this point. No amount of government spending nor austerity will solve the problem that they are massively in debt and their economy does not seem capable of paying it off.

Sounds like they should have pulled an iceland in conjunction with reigning in spending.

 

[First]

It's amazing and sad how little people understand about economics and finance.

I hope that anyone who thinks Greece hasn't engaged in disastrous amounts of austerity doesn't hold any position of significance or power that affects other people's lives.

 

[Hayabusa Rider]

It's amazing and sad how little people understand about economics and finance.

I hope that anyone who thinks Greece hasn't engaged in disastrous amounts of austerity doesn't hold any position of significance or power that affects other people's lives.

They got into this mess by disastrous policies of borrowing to begin with. Eventually it caught up with them. Now how does spending what they never had to begin with help them?

 

[Greenman]

This post is more instructive than you may realize. Basically right here you just said that regardless of evidence you will refuse to believe something. That basically encapsulates austerity advocates' position over the last few years.

It's become a religion. Scary stuff.

What country has spent itself out of debt? What country has decreased it's debt burden through spending?


The sixty four thousand dollar question is, what programs do you personally profit from?

 

[fskimospy]

What country has spent itself out of debt? What country has decreased it's debt burden through spending?

The sixty four thousand dollar question is, what programs do you personally profit from?

Haha, nice try impugning my motives. Sad. I do not profit significantly from any government program; I am a policy analyst funded by a private foundation, I'm single without kids, and I make far too much money to qualify for government assistance.

The US, despite engaging in significant austerity itself is now on track to outperform most European countries in debt/GDP ratio due to our superior growth and reduction in unemployment. They cut, we spent (somewhat). We did better.

 

[Greenman]

It's amazing and sad how little people understand about economics and finance.

I hope that anyone who thinks Greece hasn't engaged in disastrous amounts of austerity doesn't hold any position of significance or power that affects other people's lives.

Disastrous amounts of austerity didn't create the problem the Greeks are having. It was disastrous amounts of spending. How can that point even be in contention?

 

[Greenman]

Haha, nice try impugning my motives. Sad. I do not profit significantly from any government program; I am a policy analyst funded by a private foundation, I'm single without kids, and I make far too much money to qualify for government assistance.

The US, despite engaging in significant austerity itself is now on track to outperform most European countries in debt/GDP ratio due to our superior growth and reduction in unemployment. They cut, we spent (somewhat). We did better.

You skipped the first part of my question, what country spent it's way out debt?

Grats on not being a drain on the system.

 

[fskimospy]

You skipped the first part of my question, what country spent it's way out debt?

Grats on not being a drain on the system.

I didn't skip it at all, I explicitly answered it. For example between the US and UK, the UK embraced austerity and the US didn't to the same extent. Now not only has our deficit decreased to a lower percentage of GDP than theirs (5.3% vs. 7.4%) but our debt/GDP projections going forward indicate the US having a lower ratio. ie: the US is spending its way out of debt.

EDIT: Oh, and there's nothing wrong with people using government assistance.

 

[chucky2]

What do the projections look like assuming everything that assumed about the US that won't happen is taken out? NOTE: I'm still on your Spender side, just curious when Reality and not what is assumed/hoped to be reality is factored into the projections what happens.