Euro Zone Debt Crisis
http://thedianerehmshow.org/shows/2011-09-19/euro-zone-debt-crisis
Greek leaders are scrambling to meet conditions for a desperately needed bail out of approximately $11 billion to avert bankruptcy. A second infusion of rescue funds will also be required. So far European leaders have failed to agree amongst themselves on terms for this second bailout. Resolving the financial crisis in Europe requires enormous political compromise, but without a resolution, the euro could cease to exist as we know it with untold repercussions for both the European Union and the global economy. Join us for a discussion of the ongoing debt crisis in Europe.
Guests
Zanny Minton Beddoes
economics editor, The Economist; formerly, economist at the International Monetary Fund.
Sudeep Reddy
economics reporter, The Wall Street Journal.
Markus Ziener
U.S. correspondent for Handelsblatt, a leading German-language business newspaper.
Antonio De Lecea
minister for economic and financial affairs,
Delegation of the European Union to the United States
Comments
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The German population resents what their politicans are doing in having to bailout their European neighbors and there is no quantees that the poor southern countries will fix their budgets long term. It will mean a lower standard of living and higher taxes for the Germans. This is suppose to be a country with " Progressive thinking".
Even Finland has stated from Friday's McNeil Report wants "equity" in order to lend any money out to those poor southern European countries. Now does that sound "mean spirited" or good financial practice?
If Obama had good advisors (and I'm not sure he does) he would use the fact that wealthy Greeks avoided paying their fair share of taxes. If the wealthy refuse to pay their fair share here in the good ol' USA we will end up like Greece.
This should be a lesson for those who advocate a "global economy" in which large corporations troll the world in search of government subsidies (handouts) and cheap labor.
My question:
What is the current exchange rate of Euro/British Pound? Euro/U.S. Dollar? Euro/Chinese Yuan?
Diane,
Your guests have repeated the refrain that policymakers have lost credibility with financial markets, and how financial markets are unsatisfied. Yet, what about the fact that financial markets lost their credibility circa 2008? Should we judge based on the opinion of markets, especially when those same markets also caused the current financial woes that plague the EU?
About 50% of Americans pay ZERO in the federal income tax. For you tax the rich "fair share" advocates, where is is the fairness in this. Half the people have no incentive to force the government to live within it's means, they only take and want more without contributing.
Maybe if all citizens paid their fair share of taxes you wouldn't be able to point at the wealthy as being the issue. Why must the masses always cry that the people that have worked hard to be successful need to be punished. Lets try taking the wellfair recipients and have them actually do something to earn their money, collect garbage along the road or other similar tasks. Or heck have them do back breaking manual labor that incentivises them to be actual productive members of the society. Penalize people for not being successful and they will be encouraged to do so.
yes, it makes a lot of sense to put those already in poverty even deeper. Is this a great country or what??
Many European countries had expensive government programs and social programs that are unrealistic in face of currently economic realities. Having Eurozone in place meant that many of these countries are giving a chance of spending splurge and now it is too late--Germans are furious of having to pick up all the tab. By throwing money into the problem is like giving a severe alcoholic more drinks. Scrap the Euro and allow each country to start over (lowering prices to market value--Europe remains to be outrageous expensive for tourists-It needs to come down to a level that is in par with many Asian countries), start invest in economic developments (Education, Infrastructures--Chinese and Korean are doing great there), and cut the size of government (60% of Greek citizens works for their government--Totally unsustainable).
The projected growth of government spending will swallow up every tax increase you can imagine up to place on the wealthy, it's all about the size, scope and growth of government. What you people on the left refuse to accept is what you demand from government will bring the whole economy crashing down and in the end your precious nanny state will go along with it. DUMB!
I'm an American citizen living in Portugal. It's well-known (not global myth) that Greeks, in general, don't pay basic things like property tax -- this means middle class, not just wealthy Greeks. There's a pecking order in Europe (I've learned it since living here 7 years) and Greeks are at the "bottom" in terms of corruption, etc. And in the European press, they (Greeks) acknowledge this, somewhat proudly. To the listener who talked about the "poor Greeks", get a realistic picture on how Europe "works" and (more often across most of Europe) doesn't work, especially as compared to US.
And I'm not a chest-beating multinational-working expat but a somewhat naive self-employed American married to a Portuguese police officer (not a chief) who has been exposed to how basic southern Europeans live and work.
"Mike Sergeant wrote:
If Obama had good advisors (and I'm not sure he does) he would use the fact that wealthy Greeks avoided paying their fair share of taxes. If the wealthy refuse to pay their fair share here in the good ol' USA we will end up like Greece"
Mike:
It goes further than the rich bud. The tax collection system in Greece in inept. Just about everybody in Greece get away from paying taxes. Perhaps if changes ever take place, Greece can adapt a flax tax. Now everybody can pay there fair share not like what is now happening in the "good ol USA."
As I mentioned in my Friday's comment, arguing for a progressive tax
on the basis of social justice is both a losing argument (at least
in the US) and also the wrong way to think about taxes. The correct
way to estimate taxes is to consider what premiums a private sector
entity would levy if it were to provide the services provided by the
government. I would think that this would be considered "fair" even
by the most ardent capitalists.
Taxes are the fees we pay for the services that the government
provides. Considering that most of these benefits are in proportion
to a person's wealth, should the government have been a private
sector entity it would then levy taxes in proportion to a person's
wealth rather than income. Anyone who has lived in a condominium
knows that the fee one pays is independent of his/her income but
proportional to the size of his/her apartment.
In fact this is the way the government distributed the 1 billion it
gave to the survivors of the 9/11 attacks.
So Monte's argument notwithstanding, before one begin shouting
"bloody murder" about the 50\% of the people that pay no taxes, one
should look who are they (how many of these are kids, unemployed
etc.) and what share of the nations wealth they own.
Tomorrow: a simple example why a "flat" tax is utterly unfair
according to the notions outlined above.