Healing the drunk with more alcohol

Today the government has passed 11 measures to get Spain through the recession as soon as possible.

Government as all the other Keynesians are so sure that they are right that they might someday say as the Teachers from the extinct USSR said their pupils "if we live so bad with the comunist that is so great, imagine how bad American children live with capitalism", Keynesianism is believed to be always right and so you can always have a Keynesian solution to a crisis (even if it might was created by a Keynesian policy).

Keynesianism consist basically (very basically) in generating inflation increasing monetary offer or public expenditure and so creating a false notion of money in labour that for some time do their jobs for less money than before, creating some sort of economic growth, until their realise that decreasing in real terms and recover their previous wage level, cancelling the economic growth but keeping inflation.

Keynesian has proven wrong many times in Economic History anyway it still have many defendants because it gives mafias and governments money to spend freely and withouth control. If we use Keynesianism a little bit, it causes inflation and a few TEMPORARY (temporary is in capitals intentionally) growth, if used for very long (as it has happen recently) it causes inflation and recession.

The solution is, obviously, quit Keynesianisim (at least for a while) and follow classic liberal (Austrian) principles: delete central banks, remove as much money as you can from the government and give it back to the people. Otherwise, you are trying to heal the drunk with more alcohol.

To those Americans that still haven't decided

It may be to late but it you have not decided which is your favorite candidate for the primaries, you can check this web:


http://www.dehp.net/candidate/

Discriminated women

One of the most important issues in this years election campaign is that both majoritary parties are giving solutions to a supposed "women discrimination" in our society which causes that their salaries are lower and that there are very few women CEOs ruling Spanish companies.

There is another assumption in economy which is that the entrepeneurs who start companies only want to profit, this one, luckily, is true.

Wise readers have already noticed that both statements cannot be true at the same time: if women earn less and produce as much as men, companies would only hire women as they are as good as men and cheaper (because that would skyrocket their profits). That would make women unemployment smaller than for men (which is untrue) and would rise women salaries until they were level with men (which seems to be untrue).

In reality things happen as if women were well paid, just as much as men, so something is going on that keeps women pay, on average, lower than men's. In our humble opinion there are two main reasons for this:

Firstly, women choose jobs which are less well paid. There is a vast majority of women as teachers, civil servants and other professions with lower remuneration.

Secondly, women for whatever reason, do not want to sacrifice their family or their private life for a better salary and that's why there are fewer women ruling companies.

Women may earn less, on average, because their lifestyles and their preferences when selecting job, takes them to earn less, but never because of a conspiracy to annoy women. There is no need in changing the rules to solve this, because there is no problem, just different tastes. The conclusion is always the same: government, syndicates and other mafia groups, leave us alone!! We do not need your help.

Gangsta's Paradise

Imagine that a terrorist group blocks all the entries of gasoline into a country to the point that that country starts to run out of it for ambulances, some factories have to close and supermarkets have their shelves emptied. All that these terrorists ask is a huge amount of money to pay for the rise of the price of gasoline that should be given by all the inhabitants of this country in the form of subsidies. Isn't this blackmail?? Isn't this a Gangster job?? Shouldn't we send this people to jail??

Well... This has happen in Italy recently; the only difference is that this has been done not by terrorist nor by gangsters but by labor syndicates and syndicates can do this if they want. They are not definitely going to jail, all we hope is that, at least they don't get the money.

I guess Gangsta's Paradise was dedicated to us and the syndicates:

"We been spending most of our lives living in the Gangsta's Paradise"

"Tell me why are we so blind to see that the ones we hurt are you and me". Coolio dixit

Recommended Film: Zeitgeist

Marcos G. Quintas recommended us this film in one coment and we think it is awesome. You may not think that the movie's opinion on some issues is right but if you are interested in politics you must see it. We think that Zeitgeist is right in almost everything.

You can watch it here, in its oficial webpage

Go Sarkozy!!

We have to admit that when he was elected as France's President we did not trust him and we thought that he was going to be a "fake liberal" as politicians from PP in Spain or George Bush.

Recently, he is doing such a good job that we have no other option but to change our minds. Currently, he may be the only brave politician who do not surrender against the challenges of gangster groups such as syndicates or civil servants (or the worst, syndicates of civil servants).

Today, Sarkozy wants to remove the 35 hour week

Is solidarity among "Comunidades Autonomas" worthy??

Today, this year figures for the "Life Conditions in Spain" Survey have been released.

One conclusion is more than obvious, after many years of solidarity among the "Comunidades Autónomas" we can state that nothing has been achieved. This system was developed with the objective that poorer "Comunidades Autónomas" were helped by the richer ones so that in the long run equality would reign among all the territories in Spain. Almost 30 year later we can say that Solidarity was a total failure. The richer and the poor are the same territories that were so long ago. What is going wrong??

Our humble opinion is (as always) that Governments can do no good to you and so, Governments cannot do anything to achieve equality among "Comunidades Autónomas". This system only gives more money to the Government of the poorer territories (it seems that differences of public budget among comunities are more important than differences among people's income among comunities) to be spent on investments to boost growth. Unfortunately, this never happens. Once Reagan said: "Governments spends money like a drunken sailor" and so, poorer territories keep being poorer, but politicians get richer (this is the hidden objective of solidarity)

If you want to make a poor territory richer, do what always work: reduce its taxes and free its economy. A good system, for example, would be one in which companies in poorer places would pay less taxes than companies in richer places, that would definitely help to make more equal Spain...

...but it would not help to make politicians' pockets bigger.

Recommended book: Capitalism and Freedom

In this week that we have remembered Milton Friedman, it would be such a good thing to read one of the greatest hits of economics books: Capitalism and Freedom. Friedman explains all his economic thinking in this book and all the good things that Capitalism and Freedom would bring to the world. It's a classic, what else can we say??

Aren't you sick of the agriculture subsidies yet??

Then take a look at this video:

City Slickers

Life as a farmer is not that hard after all!!

We know where some of our money is spent (2)

It goes to farmers, It is allocated this way:

55.000 million € per year in Europe, 6.800 million per year in Spain

Connecting every important Spanish city with "AVE" (As the Government wants) cost 96.000 million, less than two years of european farmers subsidies...