In The News

Most seem to agree that cutting spending will slow growth and that it makes more sense to spend more, i.e. stimulus, and fix the problems when the economy begins to stabilize and unemployment drops. Sometimes I wish I knew more about economics.

It goes both ways. If you have to take out a lot of debt to fuel spending, then the value of your currency is diminished. Spending/bailouts can fuel economic growth if used effectively... though, in the case of the bank bailouts in the US a few years ago, most of that government-infused cash flow just sat in place. The banks did not use the money to improve the flow of money to consumers (which is their purpose)... they just sat on it to improve their balance sheets and, subsequently, credit ratings. But, good spending on programs that are actually useful to the public does put money in people's hands and keeps it flowing, which is the entire idea of capitalism.

Unfortunately, capitalism is a very diluted concept these days. Not just in terms of big governments, but also big corporations, which are equally as anti-free-market as government (an often-overlooked fact here in the US ... an excellent book on this subject is The Nature of the Firm by Ronald Coase).

Just my ten cents. And as for Greece, I have a hard time sympathizing with a population that committed tax fraud on such a massive scale. What did they expect?

Indeed, the US is not the best example of 'effective' stimulus. Our economy is just so huge compared to others that we can handle more problems, minus our horrible debt.

There would have to be some management of course. In the case of Europe, with my minor econ knowledge, austerity measures combined with stimulus would probably be the best way to go. I am pretty sure that is the deal if Germany is to continually give away money. A friend of mine who has family in Greece told me that the 'austerity' measures the government is currently taking include crazy expensive monthly bills for electricity, water, etc. How do they expect to get that money when many are out of work and what money they can gather must go to food? It is hard to truly know about Greece and others because I have no knowledge concerning their government structure, tax policies, spending policies, average minimum wage, etc. I will have to look at the tax evasion. My understanding was that it was the members of the aristocratic/upper classes who refused to pay their private income tax for years, not the government. No income tax means big revenue lost. Then again, one can probably claim that the upper classes are the government/politicians. The web gets more and more tangled.

Loving the discussion though. Educate me people, I love learning about other countries.

Loving the discussion though. Educate me people, I love learning about other countries.

I hate crises.

As for Hungary our amateurish government has weakened our economy with many false arrangements as if the crisis itself wasn't enough. They also managed to lose the confidence of foreign investors. As Hungary is a little country with little economy our economy doesn't really work without foreign investments. Now forint is weak as hell. And the greedy banks. Their extremly expensive loans ruined many families, local governments and firms. Although granting those loans was obviously cheating and it was very harmful to the whole country, not a single bank manager is in prison. Growth has stopped and our government announces new taxes in every week. Cellphone tax, TV tax, transaction tax, anything. I wouldn't say that there is a very huge fall in living standards, but the whole situation distresses us greatly. Extremism is expanding which is quite disturbing.

That is very disappointing to hear. Hungary does not make it on the news here, most certainly because we do not trade with you as much as Spain, Italy, Greece, etc.

This brings up the core and periphery theory. I will try to explain it in summary. Basically, the core would be the rich/influential and the periphery would be the poor/lower classes. Whatever the core does has repercussions in the periphery, and the core often takes advantage of the periphery. Another good example would be Africa, in that many countries take advantage of Africa for cheap labor and cheap products when if said countries REALLY wanted to help and still make a profit they could seriously invest in Africa's future through educating the people and improving their lives. However, it is easier to maintain cheap labor when you keep the public ignorant and unaware. North Korea is an amazing example as most of their citizens have no idea how much better life is outside of their country. I feel this is part of your problem in Hungary. The countries who trade more internationally are suffering and that means less investment in their neighbors. Unfortunately that leaves the upper classes in your country to charge all the 'average' folk higher taxes because they don't want to liquidate their assets to help. Greece is currently privatizing most of their industries, similar to what Russia did in the early 90's. We all know how well that worked out for Russia as Putin has been busy reclaiming all privatized industries for the state since coming into office in 2000. Russia is a whole other discussion though...

It screams socialism, and socialism screams fairness and equality, but this world is anything but fair. I may be wrong in my mini-lecture here, but it sure sounds like it makes sense. You will never hear a politician say it straight like that though.

Wiki may explain it better, but when you read this it almost seems like a blueprint for world history which is strangely frightening.
http://en.wikipedia.org/wiki/Core-periphery

I get the theory.
You're right we're periphery. And our other problem is that our economy is almost fully based on exportation.
Our taxation is crazy indeed. Due to the changes they made not long ago the upper middle class and the rich ones pay less and the lower classes have to pay more.

I get the theory.
You're right we're periphery. And our other problem is that our economy is almost fully based on exportation.
Our taxation is crazy indeed. Due to the changes they made not long ago the upper middle class and the rich ones pay less and the lower classes have to pay more.

It's a damn shame. But exports mean you are/have been selling things, so at least your country has the capacity to produce. That is one positive. Maybe we should re-visit the Austro-Hungarian Empire.

So the Dutch East and West India Companies will now become the Dutch Interstellar Company. Sign me the fuck up!!! I want to go.

http://news.yahoo.com/blogs/upshot/mars ... 11042.html

So the Dutch East and West India Companies will now become the Dutch Interstellar Company. Sign me the fuck up!!! I want to go.

http://news.yahoo.com/blogs/upshot/mars ... 11042.html

You do realize it's a one way ticket?

We're so curious to know what drugs does our always extremely optimistic Economic Minister take. We too want some!
http://edition.cnn.com/video/#/video/business/2012/06/07/marketplace-europe-matolcsy-hungary-economy.cnn

So the Supreme Court, top legislative body in the land, upheld the constitutionality of government-mandated health insurance. It's causing quite the stir... to the point where numerous dissatisfied denizens are threatening to flee to Canada

I don't suppose it occurred to them that Canada has mandatory health insurance as well.
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http://www.buzzfeed.com/daves4/people-m ... e?s=mobile[/url]