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German Unions Seeking Higher Pay Could Save the Euro April 30, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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Good day to all and here is a nice piece to read when you have your break from Simon Johnson @ MIT. Here are two interesting excerpts:

“One of the biggest problems flowing from the euro area’s fixed currency is that wages and prices are too high in heavily indebted states, compared with Germany and a few others, leaving the higher-wage countries uncompetitive. Cutting wages in the troubled periphery would be difficult politically. Lower wages would also make it harder to pay mortgages, compounding the problems for banks and probably for public finances, too. The solution involves a move straight out of the gold- standard playbook, with a modern twist. Since monetary union began, Germany has had substantial productivity gains and only moderate wage increases, making it highly competitive. Eurostat reports that German wages rose 2 percent a year from 2000 to 2009, while Spanish wages increased by 4.7 percent a year in the same period — more than twice as fast. Because the currencies are the same, Germany’s competitiveness has made it tough for Spain and the other weaker states to sell their products in the euro area.” and,

“If the people in charge — mostly Germans at this point — insist that the adjustment must come entirely through a fall in the absolute level of wages and prices in countries with current-account deficits and large amounts of debt, then Europe is in for a difficult, and perhaps lost, decade. But if part of the adjustment can come through higher German wages — recognizing productivity gains and consistent with continued prosperity — the path forward will be easier.”

 

 

Buy, Sell or Hold: How Can Governments Decide? April 27, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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An interesting opinion article from a Yale law professor, have a look at it during your miday break!

Taxing wages April 25, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis.
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Maybe you should spend a minute or an hour having a look at the latest OECD report about taxing wages. The full report can be found here and the special section for Greece can be found here (Greece being the OECD country with the largest tax burden on wages – cross compare it as also being one of the top OECD countries with tax evasion – and draw your own conclusions…)

Social Model Is Europe’s Solution, Not Its Problem April 23, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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An opinion article from a member of one of France’s largest labor-union groups. Have a look at it, its worth a reading.

IMF urges Greece to step up structural reforms April 20, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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Now, this is just a two paragraph statement from the troika representative Paul Thomsen, but it does point out the obvious (and read again the previous post as to how others see us): “I’m not sure this programm will succeed without improving tax administration. This is the key issue in which we have failed so far.” Thomsen said. And, oh yes, you can’t survive only by taxing wage earners and the elderly on pension. Maybe its about time to (re)think about our collective responsibilities and stop whining…

European Elections Show Desperate Need for Strong Leaders April 20, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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An opinion article from Bloomberg which I found interesting. Notable, among other things, is the notion that the article projects for us Greeks: “and Greece will have to transform itself into a nation of taxpayers with clean, transparent political institutions.” Could not agree more, it is becoming increasingly clear that the reduction in public spending alone will not restore Greece’s reliability on the global markets: we will have to saw that we respect tax (i.e. social) justice and that all contribute to the transformation of our economy.

Germany Reformed Its Social Model. Europe Can, Too April 17, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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And here is another one from Bloomberg, read it through and also read the first comment – see if you agree!

Tax System Is America’s Biggest Spender April 17, 2012

Posted by proeconomia in Fiscal policy, Main, On the crisis, Opinion.
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An opinion article that appeared today in Bloomberg by two colleagues, Wolfers and Stevenson @ Upenn’s Wharton School. Read it carefully and, as usual, read the comments that follow it to see which side are you on!

Can you dig it? April 11, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis.
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Following up on the previous post on taxation here are some more news about it, for Greece now:  from the total amount of collectible back taxes and fines for 2010 and 2011 alone (its 8.2 billion euro!) only 7.5% of it has been paid and collected! Yeap, and some more wage cuts are on their way in June!

Now, now, you must read all of them! April 11, 2012

Posted by proeconomia in Fiscal policy, Main, On the crisis, Opinion.
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There are so many interesting articles in the news today, which you should read, that I made it convenient for you! Here they are in one place:

First, read the second part about whether or not the US will come to a recession because of low consumer demand (this part examines the unemployment situation).

Next, read this article about the aluminum market and the effects of speculations from traders – but read it along with this article where the claim is that electronic, high speed trading, is good and not bad.

And last, but not least, read this “Death, Taxes Collide as Fatal Crashes Mount on Filing Day“, which examines the correlation between fatal accidents and the stressful deadlines for tax filing in the US. But do read the comments that follow the article, they are far more interesting to get the perspective and the reaction of people to the issue of taxation.

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