Global economic crisis looms - thanks to Bush

[el freako]

Originally posted by The diplomat


Well, none of these options are acceptable.

Then you will have a crisis of Mexican/Argentinian/Thai proportions.


One question, why would c) cause massive unemployment?

Some of the highest-taxed economies in the EU have unemployment rates well below the US level.

[el freako]

Originally posted by Stuie
The weak dollar is already causing rises in oil prices. Oil is traded internationally in US dollars; since the dollar is weak, OPEC is allowing oil prices to rise in order to maintain their buying power with the deflated dollar.

Quite true, whilst the price of Oil has stayed at around $28 since 2000, it has fallen from €31 to €21.

[dannubis]

Yes, let's most of all not listen to the financial experts of the IMF.

When are some of you right wing minded guys going to stop with putting your heads in the sand each time an international organisation says or does something that does not correspond to your view?

A few years ago when the Argentinian economy crashed you were the first guys to fully support the IMF's decision not to put money in Argentina anymore until they had cleared up their economical mess. Now, the same organisation is sending a clear warning about your current situation and suddenly the IMF becomes a bunch of incompetent good for nothings which don't know what they are speaking about...

[edit spelling]

[SpencerH]

Oh good, another Bush is responsible for the martian invasion thread.

[alva]

Not if they were looking for intelligence.

[dannubis]

Or if he had bothered to actually read the thread

[Kidlicious]

The IMF is almost always wrong, and in this case they certainly are. Without the weak dollar there would already be a global economic crisis. The US is doing more to stimulate the global economy than anyone else. Without stimulation you have a crisis. That's the way it works.

[The diplomat]

Originally posted by el freako

One question, why would c) cause massive unemployment?

Because higher taxes would reduce consummer spending, reduce consummer confidence, and reduce investment, causing businesses to lose lots of money. And when businesses lose money, they generally lay people off.

Some of the highest-taxed economies in the EU have unemployment rates well below the US level.

Which countries? I know France has high taxes, and it is suffering double digit unemployment.

[dannubis]

Like i said before, the way one counts the number of unemployed people is very important. The count is based on the social security database and in Europe it is a lot easier to get in one of these than in the US...

[Kidlicious]

Originally posted by Agathon


They won't bail you out, they'll just start using the Euro as a reserve. In fact that is looking a better idea every day.

They have to use dollars to buy oil. That's not up to them.

[Stuie]

Our unemployment rate is totally screwed. It is based solely on those eligible to work and actively seeking work. And even if you are under-employed, you are considered "employed". So if you are not employable because you are in prison or on parole, you're not unemployed. If you are on strike or locked out, you are not unemployed. If you are working parttime but would prefer fulltime work, you are not unemployed. If you have given up looking for work, you are not unemployed.

The real figure is probably about 6% higher than what's advertised.

"There are three kinds of lies: lies, damned lies, and
statistics." - Benjamin Disraeli

[SpencerH]

Originally posted by dannubis
Or if he had bothered to actually read the thread

You talkin to me?

[el freako]

Originally posted by The diplomat
Which countries? I know France has high taxes, and it is suffering double digit unemployment.

United States:
Taxation: 31.0% of GDP
Unemployment: 6.1%
Employment: 70.7% of population aged 15-64

Sweden:
Taxation: 59.3% of GDP
Unemployment: 4.8%
Employment: 73.0% of population aged 15-64

Denmark:
Taxation: 57.4% of GDP
Unemployment: 5.5%
Employment: 76.3% of population aged 15-64

Austria:
Taxation: 50.4% of GDP
Unemployment: 4.5%
Employment: 74.0% of population aged 15-64

Netherlands:
Taxation: 46.2% of GDP
Unemployment: 3.7%
Employment: 64.6% of population aged 15-64

[The diplomat]

Originally posted by el freako


United States:
Taxation: 31.0% of GDP
Unemployment: 6.1%
Employment: 70.7% of population aged 15-64

Sweden:
Taxation: 59.3% of GDP
Unemployment: 4.8%
Employment: 73.0% of population aged 15-64

Denmark:
Taxation: 57.4% of GDP
Unemployment: 5.5%
Employment: 76.3% of population aged 15-64

Austria:
Taxation: 50.4% of GDP
Unemployment: 4.5%
Employment: 74.0% of population aged 15-64

Netherlands:
Taxation: 46.2% of GDP
Unemployment: 3.7%
Employment: 64.6% of population aged 15-64

I hate to nitpick, but US unemployment is now 5.7%.

[el freako]

Sorry, forgot to mention that that data was for the year 2003 (the whole year, as you cannot easily calculate the other data monthly)