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What is really happening in Spain.

Amongst all the media talk of “savage cuts” in government spending in Spain (supposedly government spending is being cut by “17%” – surely that should mean that government spending next year will be 17% less than it is this year, does anyone believe it will be?) I have noticed the following facts……

Civil Service pay is being “frozen” (not cut by 17%), and unemployment benefits and pensions are not being cut at all – rather important in a nation with about 24% unemployment, and with a rising percentage of retired people on top of this.

I have also noticed that both personal and company taxation are going to be increased in Spain (on top of the tax increases that have already happened).

This increase in taxation (both on individuals and enterprises) may well hit the economy rather badly – but, have no doubt, the international collectivists will blame any slump on the “17% cut in government spending”.

At least no one is  suggesting that major savings could be made from getting Spain out of wars it is not in, or by cutting the Spanish armed forces (all 1% of  GDP that they cost).

In Spain (as in so many places) the Welfare State is out of control – and after today’s “dramatic action” (the “most savage cuts since Spain returned to democracy in 1975″  -  as “Euronews” put it,  just before getting on to the important business of attacking evil Jews for fireing rubber bullets and teargas at noble Islamists) …..  the Welfare State will still be out of control.


  1. john in cheshire says:

    There is no sign that the end is in sight for the depression (or is it a recession) that started in autumn of 2007. I think it’s going to last for another 5 years at least. And at the end of it we will all be poor (not poorer, poor). And those of us who have retired and are living on our savings, well, they’ll all be gone and we’ll spend our last few years in abject misery. People who, like me, had thought that saving for our old age would be a prudent (remember that word?) thing to do. I wish I’d spent my money on things, now, at least I’d have something to show for it. While I have every sympathy for Spain, Greece, Ireland etc, I’m more concerned with what’s going to happen to us,here in our country, because no one else seems to be.

  2. Ian B says:

    It’s the famous Misesian Ratchet. I don’t think even Von Mises could have imagined it on this scale though.

  3. Paul Marks says:

    John it turns out the best investment is also the oldest – bringing children into the world and raising them to be decent men and women.

    I hope you have done that.

    Sadly I have not.

  4. Lynne says:

    Paul, there’s a typo or three. You wrote Spain when you are obviously talking about the UK. Spain would never be that stupid. Oh, wait…

  5. NickM says:

    The best investment is beginning to look like a Toyota Hi-Lux, a loyal but vicious dog and an assault rifle. You think those Mad Max movies were just for entertainment?

  6. Paul Marks says:

    Skills are imortant to.

    For example, I have friends who have extensive farming skills – pity they are getting de facto thrown off their land to make way for more housing estates (sorry an “Eco Town”).

    However, they lack certain vital skill sets.

    Such as the making of firearms and ammunition.

    Some Americans I know would have made mincemeat of the baddies in the “Mad Max” films – because they have these skills (and also the skill of using the stuff they make).

  7. Mr Ed says:

    The (future Lieutenant) Simon Häyhä got thrown off his land to make way for Socialism, when Stalin took his Finnish village into the Soviet Union, but not before he had personally shot over 700 Bolshevik troops. If the Finns had had a regiment like him, he might have kept his land.

    In the end, the voracious hordes of tax feeders are either going to have to adapt, or perish, whether in Spain or Stevenage; the question is whether they take their victims with them or not.

  8. NickM says:

    Mr Ed,
    Much though the Finns were hard buggers in their war with Stalin (what he started) (a) they had swastikas on their fighter planes and (b) if you want to to visit a more regulated European state then Finnland I’m struggling to think.

    I like the Czechs. Rampaged on by NAZIs and Soviets alike they kept their “Fuck Off!” attitude. I would move to Prague tomorrow if the language wasn’t also “Fuck Off!”.

  9. Mr Ed says:

    Nick, your first point is misconceived; the Finnish swastika was blue, it had no more connection with the Nazis than the Swastikas on Hindu temples in Leicester today, it was a symbol of luck and protection. The Finland of the 1930s was no economic nirvana either, but they at least hankered for freedom at the time of the Winter War and in the Continuation War, during the latter they were co-belligerents with, not allies of, Germany. During the former, The USSR was allied with Germany during the Winter War, and then they turned on the Finns in 1944 devastating much of the north.

    The Czechs did not fight in ’68, unlike the Hugnarians in ’56. In Victor Suvorov’s ‘The Liberators’, his account of Soviet Army life includes an account of the invasion of ’68, and suggests that the Czechs more or less confined themselves to arguing with Soviet troops, and those troops exposed to Czech living standards and argument were often shipped off to the Chinese frontier….

  10. Paul Marks says:

    Sadly there is not a major country in Europe (or just about anywhere else) that does not have a an out-of-control government.

    Finland is no worse than Britain (although that is an incredibly low standard of comparison).

    And the deep forests of Finland perhaps someonw like Hayha would do better than a man would do here.

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