Friday, July 16, 2010

Greece - Learning from a government bail-out

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Latest reports are particularly interesting on Greece. The reason why its interesting is that Greece was required to cut its deficit to comply with the EU's requirements for support. You might be wondering two things:
1. If its this easy for governments to cut taxes, why don't more of them do it to reduce the burden on taxpayers. After all the Greek government has been able to cut its deficit by 46%. Amazing! The reason of course others don't do it is because there is nothing in it for them. If you are happy to pay so much tax, they are happy to take it form you.
2. Why is the Greek government being asked to cut spending when other governments are increasing theirs, despite their bloated debt levels? Its simply that Greece does not sustain a very productive economy. Its like being a slave trader in Germany compared to the Bahamas. Bahamanians don't have a strong worth ethic, so they just can't sustain as much taxation burden as you. Living in a western country though is not so bad, as long as the quality of life is good. When the quality of life gets to a stage where you are better off elsewhere, you can expect these burdens to fall upon no one. Rest assured most people are not going to accept such a burden. But isn't it interesting that a nation's debt is not ascribed to any person in particular. i.e. You don't see banks offering loans to your 'collective family'. They will want to lend it to each of the family members individually. In fact conjugal property rights and obligations demand it. So why do banks accept debts from governments which rest upon nothing but your government's dubious ability to enslave you? Self interest to be sure. They will not be around when the system collapses. Fortunately the population of most Western countries is increasing. Possibly if these new migrants knew what they were accepting they might think otherwise.
Andrew Sheldon

ConvinceMe.Net - Anyone up for a debate?