What would America do if it couldn’t “solve” its problems by printing boatloads of its own currency?
We’d probably look something like Ireland, where the new budget for 2010 is being unveiled.
Irish Independent: Finance Minister Brian Lenihan will reveal Budget 2010 during his speech in Dail Eireann this afternoon.
A cut to the Taoiseach’s salary is expected and social welfare is also likely to face a reduction as the numbers on the Live Register continue to increase. The old age pension is thought to be safe from any possible decrease.
A 4-6% pay reduction for public sector workers is thought to be among the other expected cuts.
Could you imagine such a public sector compensation cut here? In the US, merely freezing wages during a time of deflation is considered the height of austerity.
And if you don’t appreciate what all this government largess is doing for the economy, look at the employment outlook in countries like Ireland and Spain. These charts come from Manpower’s survey of global hiring. While most Western countries are forecast to return to hiring growth in 2010, these two bad boys are nowhere close.
We haven’t seen a Greece chart yet, but we probably don’t want to.
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