I think things look bad and there’s trouble ahead in North America, if recent events in Italy can teach us anything.
Italian PM Monti ‘unveiled a $40.3-billion package of austerity measures on Sunday... in a drive to stave off a crisis that threatens to overwhelm the euro zone.’ (Dec. 5, London Free Press) But if the euro zone weakens there will likely be many repercussions in tidy old North America, home of an excessive lifestyle that rests firmly on the back of cheap oil and an unsustainable free market economy.
The news article re austerity measures in Italy reveals what will likely occur on the N. American side of the Atlantic in the years ahead.
[Please click here for full article]
“Monti said... the package was painful but necessary.”
What our future holds: N. American austerity measures will be painful for many, but not all.
“We have had to share the sacrifices, but we have made great efforts to share them fairly.”
["Things look bad."]
What our future holds: The sacrifices will not be shared fairly.
“Welfare Minister Elsa Fornero broke down in tears as she announced an end to inflation indexing on some pension bands, a move that will mean an effective income cut for many retired people.”
What our future holds: There will be signs of sympathy from those in power toward the poorest in society but that will be about it.
“As well as an end to inflation indexing for many pensioners, the measures will see the minimum pension age for both men and women raised in stages to 66 by 2018 with incentives to keep workers in employment until 70.”
What our future holds: N. Americans will soon get used to hearing news about ‘Freedom 75,’ maybe ‘80.’
“Contrary to expectations before the announcement, there was no increase in income tax but a new property tax, expected to raise some 10-12 billion euros, will account for the bulk of the new revenues.”
What our future holds: N. American Income taxes will be slow to increase because corporations will effectively block the government at every turn. However, more families on tight budgets will have to seek smaller accommodations.
["There's trouble ahead."]
“The package also cut a number of local government functions in a bid to reduce the cost of public administration. Measures to boost growth include tax incentives for companies to employ workers and special measures to favour women and young people.”
What our future holds: The public sector will continue being under attack in Canada and the US but the private sector will get more tax incentives because of the short-sighted belief that corporations are job creators ahead of being profit takers and down-sizers.
“But Monti left for a later date the vexed question of reforming of contracts that hinder companies from laying off workers, a measure seen as key to overhauling the labour market, but which is bitterly opposed by unions.”
What our future holds: N. American governments will continue to suppress the powers of unions as they drive to depress wages and remove workers’ rights.
Some readers may believe that the Italian and N. American financial and economical situations are far removed from one another, and things that occur on one side of the Atlantic need not be repeated on the other side. They are partly correct.
The same types of unfair, short-sighted measures applied in Italy need not be applied here, but many already are as N. American corporations strive to increase wealth (at the expense of workers’ wealth and rights) with the assistance of government policy.
Things look bad. Le cose cattive.
There’s trouble ahead. Non c'è problema a venire!
***
Please click here for news about smaller lifestyles.
.
No comments:
Post a Comment