Still holds true after 85 years:
Source: Someone on Twitter or Facebook, can’t recall whom.
But it’s the thought that counts.
An overly generous welfare state combined with demographic decline. There’s a recipe for national collapse.
European economic analysts are paying too much attention to the United Kingdom and too little attention to Italy.
Yes, the Brexit decision is important, and the United Kingdom is the world’s 5th-largest economy so it merits attention to see if there are any speed bumps as it escapes from the slowly sinking ship otherwise known as the European Union.
But one of the other passengers on that doomed ship is Italy, the world’s 8th-largest economy. And if the UK merits attention because of uncertainty on its way to a brighter future, then Italy should be getting five-alarm focus for its festering economic crisis as it descends into chaos.
Part of that crisis is quasi-permanent stagnation, as illustrated by this map showing changes in per-capita economic output since 1995.
To state that Italy is the slow student in the class is an understatement. There’s been a two-decade period with…
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France has been dirigiste since Louis XIV centralized all power under him, and the French leadership has been trapped in that intellectual straitjacket ever since. The idea of lowering the burden of government and letting market forces work is probably inconceivable to President Hollande — and most of his people.
When I wrote back in 2012 that France was committing fiscal suicide, I should have guessed that President Hollande would get impatient and push for even more statism.
Sure enough, the BBC reports that France’s President has a new plan. The ostensible goal is to reduce unemployment, but the practical effect is to expand the size and scope of government.
President Francois Hollande has set out a €2bn (£1.5bn) job creation plan in an attempt to lift France out of what he called a state of “economic emergency”. Under a two-year scheme, firms with fewer than 250 staff will get subsidies if they take on a young or unemployed person for six months or more. In addition, about 500,000 vocational training schemes will be created.
Needless to say, if subsidies and handouts were the key to job creation, France already would have full employment.
In reality, real jobs are created
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One of these days, we’re going to come to our economic senses. Soon, I hope.
And I’ve even explained that the welfare state has a negative impact on savings and wealth accumulation (these dramatic charts show Social Security debt in America compared to ever-growing nest eggs in Australia’s private pension system).
But if new research from the European Central Bank (ECB) is any indication, I should be giving more emphasis to this final point.
Culling from the abstract, here’s the key finding from the working paper by Pirmin Fessler and Martin Schürz.
…multilevel cross-country regressions show that the degree of welfare state spending across countries is negatively correlated with household net wealth. These findings suggest that social services provided by…
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Oh, really? Why, oh why am I not shocked to find collusion between Green statists in the government and climate alarmist groups?
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