Euro Area

[Kagemusha]

Furunculus, You are simply toting the same Thatcherian principles i mentioned before in earlier post. You are bringing up ideas of certain click as some sort of "truth".

If your line of thought was without faults.Your equation would actually work, but it does not. If you look at the list of most competitive countries in the world.You see it dominated by countries that base their economies in mixed economy.Take a look:

http://www3.weforum.org/docs/WEF_GCR...ts_2011-12.pdf

The mantra about public spending in all its forms being bad and drive of privatization of as much of public spending as possible, is not a new thing. Some like to sing it, some dont. To me the future of Western economies is not lowering its standards in the level of other parts of world in order to compete in basic production and low profit manufacturing. It will do nothing but initiate a downward spiral for majority while creating a larger surplus for few.

To me the key to success in future is social mobility, so all the human resources available will be used as well as possible. For this we need good education chances for both youths and adults in terms of adult education, healthcare and good safety network against unemployment, so we will not alienate possible work force from the market. For all this we need public spending, as profit making companies are not able to ever fill this place, as it is against their very nature to divert resources from avenues creating immediate profit. Nor such should be ever even demanded from them.