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2005-06-11 Europe

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Posted by Matt 2005-06-11 12:19|| || Front Page|| [3 views since 2007-05-07] Top

#1 An economy that requires at least half the hourly wage to be paid over to the government in the form of taxes and entitlements, and on top of that significant consumer and corporate taxes, is no longer competitive.

Bingo.

Posted by Rafael 2005-06-11 15:16|| 2005-06-11 15:16|| Front Page Top

#2 No.

Posted by gromgoru 2005-06-11 15:44|| 2005-06-11 15:44|| Front Page Top

#3 She must.
And she may have a better chance to succeed than anybody else before.
The SPD is not fading, it's crumbling, it may even face radical Left competition now and already the SPD boss called for "higher wages" for everybody. That'll work, yeah.

The thing is, people know that radical reforms are needed. They don't want them of course, but they know they need them. It's the dentist situation.
Merkel can afford to be frank about her plans BEFORE the elections, and this is good. She'll have a real mandate, backed up by a 2/3 majority in the Upper House as well. She'll have real power.

But she will need to face leftist opposition within the unions and in the streets. She'll need balls to confront them like Maggie Thatcher. When she's asked about the Iron Lady she avoids the subject. But I think she may go there.
She'll probably have a coalition with the Liberals (Libertarians rather by US standards).
She'll have two years before regional election will change anything substantial. Let's hope she'll use those wisely.

My suggestions:

1) A radical tax reform. Less taxes, more income to tax. It will cause problems with debts and deficits, but they will go away, like in the UK. If the EU complains, tell them to shove it. If they continue, bring back the DM.
2) Breaking the unions (so every company can decide on its own how much a wage rise they can afford)
3) No more pay for sick leave the first 3 days (better one week)
4) Fire easily, hire easily
5) State employees to pay for their pensions themselves.
6 De-bureaucratize administration by a simple tool. If a company applies for anything, it can consider the application granted if no objections are raised within a month (that'll speed things up)
7) Reform health care: Basic health care for everyone, everything extra you pay for it by yourself.
8) Phase out Social Security for the young (that will be a very gradual shift into investing into your own pensions). This is actually a more pressing issue in Germany than in the USA due to the age pyramid.

Posted by True German Ally 2005-06-11 16:38|| 2005-06-11 16:38|| Front Page Top

#4 5) State employees to pay for their pensions themselves.

For regular, (non-government) employees, who pays for the employees' pensions? Is it deducted from the employees' earnings, or does the company (corporation) itself cover the costs of the pension, on top of the worker's salary or wage? (This is how it's done in Poland, and it is a major barrier for start-up companies)

A nice first step would be for the employees to manage their own pensions.

Posted by Rafael 2005-06-11 16:49|| 2005-06-11 16:49|| Front Page Top

#5 I agree with TGA, although healthcare is a tough nut to crack. I spent a lot of time working in Germany 3/4 years ago and I got the clear impression, that while the Germans liked their welfare state and 6 to 8 weeks vacation a year they realized the good times wouldn't go on for ever and were prepared to work more for less if convinced of the need. A very pragmatic people the Germans.

Posted by phil_b 2005-06-11 16:52|| 2005-06-11 16:52|| Front Page Top

#6 good luck and I sure as hell hope it works, TGA

Posted by Frank G">Frank G 2005-06-11 17:57|| 2005-06-11 17:57|| Front Page Top

#7 Good luck TGA. Work hard but not too hard, Germans make me nervous when they work too hard.

Posted by Shipman 2005-06-11 19:29|| 2005-06-11 19:29|| Front Page Top

#8 LOL we just never seem to get it right for everyone...

Posted by True German Ally 2005-06-11 19:37|| 2005-06-11 19:37|| Front Page Top

#9 Although it goes against the grain in Germany, she will have to create some kind of "movement" oriented for change, along the lines of the Reagan Revolution. To do so, she should emphasize optimism, a hard thing to do in pessimistic Europe; Christianity, not as opposed to secularism or other religions, but as a moral foundation; and especially, free enterprise. Since the majority of new jobs are created by small business, clear the bureaucratic path for startups. I also agree with tax-slashing, though the reality can be far less than the *concept*--to get people to accept the notion that "tax cuts are good". Unions also have to be brought in line, but then public works projects also put downward pressure on unemployment. Then a hard push to welfare reform, to some extent demonizing those who don't try hard enough to earn their own keep.

Posted by Anonymoose 2005-06-11 19:59|| 2005-06-11 19:59|| Front Page Top

#10 Optimism is the key thing... if people believe in the future they start spending and if they start spending...
This country has trillions stashed away... lets use them

Posted by True German Ally 2005-06-11 21:26|| 2005-06-11 21:26|| Front Page Top

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