Quote:
Originally Posted by CaptainCrunch
right now one of their biggest problems is based around program spending. Pension spending and civil service spending.
Again they tried to use government employment as a way to balance off employment so they now have a incredibly bloated civil service, where they're paying out a wack of money and its not bringing in any revenue at all.
You can somewhat balance off government spending by bringing in tax revenue, they're not doing that well.
MAybe someone can confirm it for me, but somewhere around 2 million people are government employees, at least that's the number that I read. In a country of what 11 million people, that's seriously a money pit. Civil or government service shouldn't be the largest employment sector in any country. Its revenue negative, they're getting paid out far more then they generate.
If you raise the retirement age to 67 then you can at least collect an additional 7 yers of pension contributions and tax people for an additional 7 years in the work force so to me that does make a difference, your also not paying out 7 years worth of pension payments. It should make a fairly significant income growth and spending cut on its own.
Greek fundamentals are poor, so stimulous spending won't get them out of the ditch as long as their ygdp is outstripped by debt.
riight now Greece debt to GDP is 160%, that means to me that for every dollar that your average Greek produces towards the economy the government is spending 1.60, and most of that is not spending that will stimulate the economy.
Until the Greeks cut their payroll, address their underfunded pensions, and find a way to generate more money through taxation, stimulus money is a nearly worthless endever it just increases their debt load for very little gain.
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My point is that if you have high unemployment, then who are you going to make work until they're 67?
And if these people are government employees, not paying out 7 years of pension payments but paying them 7 more years of salary would increase government outlays.