Tag Archives: private sector

A New Welfare State?

A New Welfare State?
Pres. Obama’s government has well and truly entered the zone of the surreal with its senior staff increasingly looking like heroes in a Dostoevsky novel, who, unafraid of the ludicrous, march ahead, full of confidence, right to the edge of the cliff of a New Welfare State.
President Obama is trying through eloquent words to convince the public that taxing the “rich” will solve the problems that his policies have failed to do so.
The problem with most eloquent people is that after a while their words lose their significance
ending up in an abstract composition that cannot respond to reality.
Maybe Obama’s speeches are an effort to placate the middle class that see the lack of economic growth as a result of his economic and pro statist policies.
The government has obviously forgotten that the state is funded for the sole purpose of performing certain tasks and not to take ever so more funds away from the private sector in order to finance a new welfare State.
In the present day, this means that a small business owner who has been in business for 20 years and has a presumed income of a certain amount depending on the area where the business is located should pay higher taxes in order for the State to make up for the lack of competitiveness and private sector investments.
The government even goes so far as to brag about its policies, saying that it is saving the middle class and therefore we should support more of the same pro-statist policies. It has obviously failed to see that its amateurish handling of the economic crisis has created an uncertain environment for private sector investments and the economy is stagnating.

The moment of truth

Mr. Nikos Konstandaras is managing editor and a columnist of Kathimerini, the leading Greek morning daily.  He is also a contributor to The BusinessThinker.com

This editorial is also published in Kathimerini.

If there is anything positive in these feverish days, it is that no one can pretend not to understand the severity of the crisis, be they in Greece or elsewhere.

The fact that the government is preparing measures that include tens of thousand of layoffs in the public sector and a further reduction in pensions means that it understands it has no room to maneuver: It will do that which it fears will lead to its fall. It has to deal not only with the dictates of the troika but also the fact that even its strongest supporters — such as France — can no longer hide their exasperation with Greece’s inability to carry out policy.

Today not even the most zealous of conspiracy theorists can convince anyone that the turbulence in German politics, the cracks in the French banking system and the rollercoaster rides on the international markets are nothing but a concerted effort to buy Greece on the cheap. Continue reading The moment of truth

The right people for the job

Alexis Papachelas is a guest editorial writer to The Business Thinker. He is currently the Executive Editor of the long standing and highly respected daily Greek newspaper “Kathimerini”.

Greece’s politicians have at last realized that a number of the crucial issues facing this debt-ridden nation (such as the privatization of dysfunctional public utilities and the complex negotiations regarding the country’s mammoth financial woes) cannot possibly be solved without some assistance from private sector technocrats.

The existing employees in the public sector have proved themselves quite incapable of dealing with the challenges of the day. The entire state apparatus depends on a small number of experienced people — but these will not suffice. The issues at hand are complicated and the representatives of Greece’s international creditors are extremely demanding and skilled.

Continue reading The right people for the job