Death Star Economics



The Spanish explosion (cont’d): ARRIBAAAAAAAA…

In Spainyouth unemployment has risen to 52%, says Markit, which represents around 1 million people, or something like half of 16-24 year olds. General unemployment measures 5.4 million, which accounts for 1 in 4 being out of work. That’s pretty depressing; here are some charts.

And that’s not all, S&P played the downgrade game again, cutting Spain to BBB+. But remember, Spain doesn’t need help… Here’s the FT’s Peter Spiegel discussing whether [market] fears concern the break with EU-imposed budget targets or the eventual agreement to comply with themread article

Loads of confusing things are happening in the Netherlands: after the Dutch government collapsed in all its glory over the last weekend, when Geert Wilders refused to back proposed budget cuts, everything seems to have calmed down last night. The EU had set a deadline for the country to work out a budget deal for Monday; last night, word got out that the GreenLeft party had backed the planCuts will include freezing public servants’ salaries for the coming two years, a 2% increase in VAThigher taxes on alcohol, tobacco, soft drinks and gas, less tax deductions and various cuts in the healthcare sector. read article

Meanwhile, the German newspaper Die Welt says that if Merkel and Hollande would continue their game of chickenthat will mark the [continued beginning of the] end of the eurozone. On the one hand that would take about 80% of topics I write about away, but at least we’d get some peace and quiet around here.

Indeed, I’m getting fed up with Europe once again, so let’s have a look at the US, where GDP data for Q1 2012 will be released any minute now. Expected is proper actual growth in January and February, and a less awesome March. Haven’t we seen that before? Yes, we have.

The Atlantic discusses fairness and taxes, not exactly a new topic, asking whose taxes should actually be raisedfirst when placing so much value on fairness. read article

Complimentary graph from the Economist: if tax cuts are meant to encourage growth, then why is it that strong growth and high taxes seem to go hand in hand?

Have a good weekend.


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