New protests as Greece approves austerity bill

[I AM NOT THAT GUY 5,715]

ATHENS, Greece (AP) — Tens of thousands of protesters marched through Greece's capital Thursday after lawmakers approved drastic austerity cuts needed to secure international rescue loans worth euro110 billion ($140 billion).

Demonstrators, banging drums and shouting anti-government slogans through bullhorns, unfurled a giant black banner outside parliament. More than 30,000 demonstrators filled downtown streets, chanting "They declared war. Now fight back."

The protest followed violent street protests on Wednesday that left three people dead after a bank was firebombed.

In parliament, lawmakers voted 172-121 to approve the cuts — worth some euro30 billion through 2012 — that will slash pensions and civil servants' pay and further hike consumer taxes.

Prime Minister George Papandreou expelled three Socialist deputies who dissented in the vote, reducing the party's number of seats to 157 in the 300-member parliament.

"We have done what was necessary, not what was easy," Finance Minister George Papaconstantinou said after the vote. "Without these measures, we'd be thrown into the deepest recession this country has ever known."

The bulk of Thursday's protest — organized by the Greek Communist Party — quickly dispersed, leaving about 5,000 demonstrators outside parliament.

Protester Thodoris Mougiakos said he was angry the IMF would control Greek finances.

"It's blackmail," the 32-year-old engineer said. "There is money, but they spend it on things like armaments and businesses. The church has money too. If we had been drawing money from all these sources, we wouldn't be in this situation now,"

But the protest remained peaceful, in contrast with Wednesday's rioting that left three people dead, 59 injured and 25 people arrested. Police said 50 stores, banks and offices were damaged and seven vehicles damaged or burned.

http://www.newstimes.com/news/article/New-protests-as-Greece-approves-austerity-bill-475277.php

[w¡n9Nµ7 §£@¥€r 123]

"It's blackmail," the 32-year-old engineer said. "There is money, but they spend it on things like armaments and businesses. The church has money too. If we had been drawing money from all these sources, we wouldn't be in this situation now,"

Goddamn businesses!

[Dan J 277]

So, the new tool for the day trader will be to organize protests in countries like Greece to manipulate US stock prices and make off like a bandit.

[Mr. Big Dog 10,747]

Do these folks really think that they can protest their way out of their national debt? How about working a little instead?

[PhiLandShiR 18]

Do these folks really think that they can protest their way out of their national debt? How about working a little instead?

What?? You mean that won't work?!? I guess the TeaBaggers will be so disappointed...

[Heracles 417]

Goddamn businesses!

That guy is clearly a government worker.

I do hate to say it but Greece is an example of what happens when you become uber socialist. People start to expect jobs from the government, even for doing nothing. It shows that neither extreme socialism or capitalism works. Evidently a middle ground of the two works well, hence Canada and Australia.

[Mr. Big Dog 10,747]

What?? You mean that won't work?!? I guess the TeaBaggers will be so disappointed...

Maybe they can move to Greece?

[PhiLandShiR 18]

Maybe they can move to Greece?

Maybe we should start a fund to help pay their way....

[Usui Takumi 1,562]

I think Greece is more an example of what happens when corruption becomes so rampant that nothing can be done.

[lostinblue 1,989]

That guy is clearly a government worker.

I do hate to say it but Greece is an example of what happens when you become uber socialist. People start to expect jobs from the government, even for doing nothing. It shows that neither extreme socialism or capitalism works. Evidently a middle ground of the two works well, hence Canada and Australia.

http://www.businessandmedia.org/commentary/2010/20100505135805.aspx

As government wages and social benefits represent 75 percent of total public spending in Greece, this will require acceptance by the government unions. In particular, it will require a freeze on government salaries, the elimination of the standard bonuses paid to government workers that amount to roughly two months pay, and an increase in the retirement age to 63 by 2014.

The Greek problem has been a long time coming. In order to join the Euro zone countries were to keep their deficits to no more than 3 percent of GDP. Greece has managed to more than quadruple that. The country already has a top income tax rate of 40 percent, and a value-added tax of 21 percent.

In addition, employers pay 28 percent of salary for social security and employees pay 16 percent. These high tax rates have led to a culture of tax evasion, with the government struggling to collect the revenues due it. The high tax rates also lead to a reduction in economic growth. Indeed part of debt problem of Greece is that its GDP is estimated to shrink by 5 percent in 2010, according to Economist Intelligence Unit Forecast.

The Greek government has made many more promises than it can keep. It has a bloated public sector with high retirement benefits that are not sustainable given the country’s growth rate and aging population. It has a Socialist government with all the attendant difficulties of central planning that were endemic to the Soviet Union.