On Sunday, protesters insisted that workers and the unemployed would not passively accept spending cuts to help ease a crisis they had no role in causing.
"The banks and the governments that caused this situation must know that we do not agree with the measures and the budget cuts, that we intend to be heard", the "indignants" movement said in its call for nationwide protests.
Monday, June 20, 2011
Is Spain the next Domino?
And the dominos keep falling, this time it is Spain. Again, they spend more than is brought in via tax revenue so they need to go to financial companies ("bankers") to buy the bonds to finance a government they can not afford. When the bill comes due the government realizes they need to curb spending and protests break out. A sad script playing out before us and it may not be too long before we see it in the US. The money quote:
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I really don't see how we can avoid playing out the same "script" which we have seen in other countries such as Greece and Spain. Medicare is expected to be exhausted by 2029 and social security by 2037. Also social security, which has had a surplus for many years, is predicted to consistently payout more in benefits than it collects in payroll taxes starting in 2015. This will of course only add to our annual deficits as money is transferred from general revenues to pay back the IOUs the government left in the trust account. I could go on and on but the point is that there will be increased pressure to increase spending, not cut it. Faced with these enormous not so distant future problems, I really don't think the politicians will have the political will to do anything until they are up against the wall. At that point the austerity measures will be rolled out and protest will immediately follow. I hope I am wrong, but I just cant see any way around it.
ReplyDeleteGerry
http://rantsravesreviewsreflections.blogspot.com/
I personally admire the rebellion of those 40,000 or so Spaniards. I say that full knowing that do need comply with the economists and politicians. They may be a bit irresponsible for not attempting to aid in reviving their nation's finances. However, as an American, I know that such an occurrence couldn't be found in our stateside streets. Our citizens lay down a bit too easily for their frightening leaders. I just think the unanimous activism of the Spanish people is a good sign in their collective spirit, regardless of their misguided demands.
ReplyDelete-Emmett