Sunday, August 14, 2011

Italy's Largest Union Threatens To Strike Over New Austerity Package

We are witnessing the beginning of the end of modern capitalism­. The banksters will force countries to make austerity cuts to their budgets and lower taxes. Economies will slow further which will lead to banks demanding more austerity measures. The economies will slow even more. Companies will continue to hang onto cash and not invest in the local economy, choosing instead to relocate jobs overseas. Fewer and fewer people will be able to buy the things that are imported, more jobs will be lost and the world economy will collapse.

Few, if any country has a spending problem, they have a revenue problem. The more taxes are cut, the fewer jobs that are created locally. Cut taxes and profits, both personal and corporate, increase. Cut taxes, and investment­s move to where there are less costs (read wages and supplies) in order to increase profits.

We saw this happen when NAFTA was made law and jobs shot to Mexico. US workers lost jobs that were then replaced with lower paying jobs. Wal-Mart went from a company that advertised Made in the USA to one that exported jobs to China to increase profits. Now Mexican workers are too expensive.

Tax laws in all countries have to be restructur­ed so that investors and corporatio­ns plow money back into the local economy. When tax laws make real investment possible, rather than speculatio­n, the world economy will get better. Until then we will slowly slide into depression­, anarchy and war.
Read the Article at HuffingtonPost

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