Spain
and many of its European neighbors are coming face to face with the realities
of paying for a utopian nanny state, aka: socialism.
With 190 billion in staggering debt, Spain is being
forced to make economic decisions that make sense, in order to continue on
without suffering economic collapse.
One of those decisions is to start to privatize their government
run healthcare system. Madrid proposes selling off the management
of six of 20 public hospitals and 27 of 268 health centers. Of course this has
sparked outrage from the unionized government workforce, who sees a threat to
their lifestyle.
Spain,
like many similar socialized countries, has a heavily unionized public sector
which drives much of its economic policy.
Spain’s unemployment
rate is around 25%, yet last year, civil servants earned 30 percent more, on
average, than the rest of Spain's
workers…. Those wage disparities are similar to the US ratio.
For instance, according to figures released by the transport
ministry, 135 air traffic controllers earned
$830,000 per year while 713 earned between $476,000 and $715,000.
In addition, the controllers can retire at the age of 52.
But the new right of center government is trying to crack
down on this abuse and bring some fiscal sanity to Spain.
Other economic problems facing Spain are their heavy investment in
“green energy” or renewables, that were made by the previous Socialist government. This has not only proved to be an economic
blunder, but a job killer as well, with every Green job wiping out 2.2 jobs in
conventional industries. See: Spain's Green Disaster a Lesson for America - CBN.com
The new Spanish government decided to cut all Green
subsidies for new renewables projects, a move that has effectively killed Green
energy in Spain.
The government will also start to tax renewable energy.
As usual uneconomic wind and solar industries were kept alive
by Green subsidies, costing billions a year….in other words totally
unaffordable. If government subsidies
are cut, the companies pushing this flawed technology go bankrupt.
Even Germany
a far stronger economic engine than Spain,
is buckling under its investments in “renewables” See: Germany says solar is path to bankruptcy
They say a smart man learns from his mistakes, but a
brilliant man learns from others mistakes.
Does that axiom translate to countries as well?
As we can see from Spain and other european countries in debt and teetering on bankruptcy,
their economic model doesn’t work, it is right there in our
face.
Yet for the past 4 years our government seems intent on
following this path.
A frequent visitor to the White house has been Richard Trumka,
head of the powerful AFL/CIO. Trumka has
bragged repeatedly in the past he is in touch with the White house every
day. Trumka along with the leaders of
the SEIU/AFSCME unions have focused on recruiting ever-growing numbers of
government workers who benefit from higher taxes and bigger government.
The administration has been highly partisan in its support
for organized labor and has appointed members to the NLRB who are fiercely pro
union and very anti business.
The provisions in Obamacare heavily favor unionization of
the healthcare industry, which does not bode well for containing medical costs.
As a side note, Obamacare did nothing to curb the multi billion dollar medical
lawsuit industry. Some say lawsuit abuse adds as much as 40% to the cost of healthcare.
America
under this administration has “invested” billions of dollars in renewable energy/green
energy, with spectacular failure as a result.
We have read about the 26 dollar a gallon bio fuel the navy has been
forced to purchase. We have also become familiar with green company names like:
Fisker-Solyndra-A 123 Systems- Tester
and Ener 1 who are synonymous with bankruptcy.
This does not count billions in grants and subsidies that are put on the
backs of utility rate payers who pick up the tab of subsidized wind and solar
expenses in the states.
President Obama was just elected to
another 4 years as President. We are
speeding towards government run healthcare as Obamacare kicks in. The President seems to have a fixation on
converting the country to green energy, so it seems the spending in that area
will continue unabated, even though there are no breakthroughs in the
underlying failed technology..
Will America learn from the European model?

