RAISING THE The
Closure March 17, 2010
1. The new budget of Moscow: the sudden death of culture, education and public health
Russian
2. The deficit in Canada: Ottawa is the cons-balance with our utilities shredded
4. Is Keynesianism can show us how to reduce the deficit without killing the economy? RUSSIAN BUDGET The Duma, Russia's parliament, passed another law that will give a great blow to the death of culture, education and public health.
The fight against these sectors has been ongoing for several years already, but it seems that this time, members are determined to end for good
The law clearly demonstrates the intention of the State to release them from any social responsibility that it still remains to the people
research, culture and education must now fend for themselves - or die completely.
Officials said the law aims to "optimize budget spending"
What this means in reality is that these expenditures could be eliminated.
If the law comes into force, public health and education will be removed from the federal budget as from 1 January 2011.
other hand, give carte blanche to scientific institutions, academic and cultural to earn money as they can.
the government will soon cease to bear the burden of debts accumulated by schools, hospitals and libraries.
Consequently, we might begin to see museums or medical clinics go bankrupt and close their doors in the near future.
the luckiest organizations will be designated as "state institutions", but it is too early to congratulate these agencies, the law also states that their "surplus" will be seized.
For now, we can only guess that will determine how this surplus is, by what criteria they will use and how they will be allowed to take.
orphanages, prisons and psychiatric hospitals are to become "state institutions."
So unless you're not an abandoned child, mad or sitting in jail in Russia, do not expect to get government assistance.
Meanwhile, authorities continue to work in their preferred goal: mergers, consolidation and rationalization of hospitals, schools and universities.
After all, who needs so much scientific institutions? Certainly not the small rural villages ...
authorities fully understand that the growing number of young graduates have nowhere to apply their skills.
And neither the government nor the private sector are ready to create massive employment
The millions of young people who enter the labor market in the next two to three years will be placed in this unfortunate category called "surplus".
But authorities logic to their own actions. If these people
surplus is not only the unemployed but also educated, they could pose a serious threat to the ruling authorities.
It would be better, they think that people spend hours each day watching television to watch the series past time and entertainment, drink or take drugs than to read and learn.
Maybe that's why no plans to cut funding for prisons and mental hospitals?
DEBT DEFLATION RISK Canada's Conservative government, who does not believe the principle of government has a plan to cut public services.
As announced in his budget, he intends to cut jobs in the public service, and reduce the rate of increase of our public spending is already falling.
The projected deficit of more than $ 50 billion has been invoked as the main reason
What deficit? Add the federal debt this year than previous years and you get
But compared to the total economy of Canada in fiscal year 2008 to 2009, the federal deficit was its lowest in 25 years.
When measured as a percentage of revenue in the last fiscal year, it represents only 13 percent of income used to pay the cost of servicing the debt of the Canadian government.
Not much when compared to the 37.6 percent it was in the recession year 1990 to 1991.
Views like this, the true costs of debt are low ...
It shows there is no justification for reducing the number of staff or spending cuts needed for health care, education, vocational training, the rapid transit, environmental protection, recreation, amateur sports, cultural activities, employment insurance and income security in retirement
There is still much room for new borrowing to combat unemployment, at a time when an estimated 800 000 people saw their unemployment benefits expire
Unemployment can be reduced by government policy ... the government is supposed to be there for that!
We realized that in the early 20th century ... that mass unemployment, as we saw in 1930, was unnecessary.
Indeed, in terms of macroeconomic policies as developed by John Maynard Keynes and his many supporters are not heard enough, moreover
At the time, the great depression was caused by austerity policies of the government ... exactly the type that Canadians are supposed to welcome with open arms today.
What we've learned there are eight decades, was a shortfall in government revenues is a symptom of a failing economy, not the cause of the recession.
Breaking expenditures in accordance with income only aggravates things.
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Budget last week, the Conservatives wanted to push us into a new era of austerity
An era which will only worsen things for Canadians already unemployed, and add their numbers.
Alarmingly, the Liberals have shown no sign that they understand the link between public spending and job creation
they do not have a spending program to offer instead of austerity
the Ministry of Finance now refers to government spending as "losses" rather than investments.
In other words, the Government sees education and health care as a black hole
This perspective is dangerous to our collective health
Vanier Institute of the Family recently released a report on the high indebtedness of households:
not less than 1.3 million Canadian families might be in the red
Over the last 10 years, family debt increased twice as fast as income, the report said.
Given this economic uncertainty, families are reducing their spending on debt try to repay their debts.
This is an example of what should concern us most: the debt deflation.
If consumers stop buying in order to repay the debt, companies may also decide to pay their debts
rather than investing in new productions, because the companies anticipate that consumers will not buy
The vicious cycle of households and businesses, reducing costs due to debt is what turns a recession into a depression.
That is the danger of debt deflation, the Conservatives are acting without thinking
In current circumstances, the worst thing a government can do is to reduce its own spending
because this debt deflation will only worsen.
All this is worth to know, now that we have entered a new era of hysteria around the deficit, with governments and the business community by eliminating the deficit their priority above all other objectives .
In this spirit, Finance Minister Jim Flaherty has an austerity budget last week, slashing $ 17.6 billion in government spending planned and He promised to cut even deeper if necessary.
But while that balancing the books is an important goal ... make it an obsession to show blindness
A family celebrating having balanced its finances, while her children were lying on the kitchen floor, hungry, and the roof is on the verge of collapse ...
Looks like she is clearly suffering from a distorted sense of priorities.
The long-term spending cuts are devastating
There are ways that the economy is recovering and that way we will reimburse the deficit, with a little more time.
Tax hikes for the rich and big business profitable has been removed, why?
United States, for example, the Clinton administration had addressed these same problems of deficit in part by raising taxes significantly for those at the upper end of the social ladder.
While the rich whine, they ended up paying higher taxes, and Clinton left office, boasting of budget surpluses.
Ottawa's decision to rely almost exclusively on spending cuts, deficit reduction of Canada puts the weight squarely on those with incomes below
The Conservatives, who are supposedly mandated to reduce the size of government, have not hesitated to help people up of the social ladder
But this assault on our social infrastructure is not necessary.
As Clinton showed, there is much room for tax increases on top
And even more room now than in the 1990s, with strong income gains of the elite in past ten years. In
Last January, a referendum was held in the State of Oregon, giving voters a choice between reducing the deficit through spending cuts or higher taxes on those earning over 250,000 dollars per year and corporate taxes.
They chose tax increases
Like the Canadian public could do if we ever gave them a chance.
REDUCE THE DEFICIT WITHOUT KILLING THE ECONOMY How can we reduce the deficit without killing the economic recovery?
Governments, whether in Greece the United Kingdom or even the United States, seem stuck with this dilemma
Yet, Keynes proposed an alternative solution: tax the rich.
is good for growth and it does not break the bank.
In the euro area, the debate has been dominated by fears that Greece, Spain and other countries become unable to finance their deficits.
Ireland is already engaged in savage cuts in the middle of a recession continues.
This could still be the fate of most major economies like the United Kingdom if the promised relief is not as robust as hoped.
Keynesian economists argue, correctly, that such reductions would only push these economies into deeper recession.
But when the government is split, which alternative-y 't it?
Keynesianism has always focused on the role of anti-cyclical deficit spending.
Keynes acknowledged that his general theory has also impacted on other economic policies positively.
One of them, though significant, was that the reduction of economic inequality can stimulate demand and therefore growth.
A recent book, The Great Financial Crisis, by economists John Bellamy Foster and Fred Magdoff is exemplary.
It traces the origins of the crisis, hence the decline of capitalism in the post-war "Golden Age" of capitalism today.
In broad outline, it proposes a Keynesian analysis of what led us to the current crisis, and the next, which should take place very soon.
I suggest you read this book before it arrives.
There's thunder in the air between the provinces and the central government. The Prime Minister has found Wednesday in the National Assembly. Summoned to answer an oral question from MP Jean-Lucien Busa, Adolphe Muzito received 400 parliamentary questions, especially on the "destabilization of the provincial institutions by the central government. "
