• Madison County Record
    • Madison Living
    • Living 50 Plus
    • Explore
    • Classifieds
    • Public Notices
      • Public Notices
      • Alabama Public Notices
    • E-editions
    • Contact Us
    • Services
      • About Us
      • List of Locations
      • Subscribe
      • Policies
      • Terms of use
      • Submit a news tip
      • Submit a photo
      • Birth announcement
      • Engagement announcement
      • Wedding announcement
      • Submit a Classified Ad
      • Letter to the Editor
    • Madison County Record
    • Madison Living
    • Living 50 Plus
    • Explore
    • Classifieds
    • Public Notices
      • Public Notices
      • Alabama Public Notices
    • E-editions
    • Contact Us
    • Services
      • About Us
      • List of Locations
      • Subscribe
      • Policies
      • Terms of use
      • Submit a news tip
      • Submit a photo
      • Birth announcement
      • Engagement announcement
      • Wedding announcement
      • Submit a Classified Ad
      • Letter to the Editor

Hartselle Enquirer
  • Home
  • News
  • Sports
  • Obits
  • Opinion
  • Public Records
  • Madison County Record
  • Madison Living Magazine
  • Classifieds
  • Public Notices
  • Contact Us
  • Services
  • About Us
  • List of Locations
  • Subscribe
  • Policies
  • Terms of use
  • Submit a News Tip
  • Submit a Photo
  • Birth Announcement
  • Engagement Announcement
  • Wedding Announcement
  • Submit a Classified Ad
  • Letter to the Editor
    Hartselle Enquirer
      • Site logo
      • Home
      • News
      • Sports
      • Schools
      • Opinion
      • Events
      • Lifestyles
      • Business
      • Records
      • Special Sections
      • Site logo
      • Home
      • News
      • Sports
      • Schools
      • Opinion
      • Events
      • Lifestyles
      • Business
      • Records
      • Special Sections
    Columnists, Opinion
     By  Staff Reports news Published 
    9:00 am Friday, May 14, 2010

    The shock troops of bankruptcy

    Greece’s largest public-sector union is taking to the streets to wage a “social battle” against austerity measures.
    This is very unfortunate news for austerity, since it has never fought a battle — social or otherwise — with the unions in Greece that it hasn’t lost in a rout. Although this time the stakes are much higher — a debt crisis with global implications that The Economist has dubbed “Acropolis Now.”
    The European Union and the International Monetary Fund have extended Greece a $145 billion bailout over three years in exchange for a budgetary clampdown so severe it would make even fiscal ascetics yelp in pain. As the financial analysts say, there’s considerable “implementation risk.” In other words: Don’t hold your breath.
    The Greeks got to this point the old-fashioned way: They spent more money on the public sector than they possibly could afford, and then lied about it. Last year, they announced that their deficit wasn’t 3.7 percent of gross domestic product as advertised, but 12.7 percent. Only in Athens does a multiplier of more than 3 qualify as a rounding error.
    Public wages and pension payments absorb half of the Greek national budget. The government doesn’t know exactly how many people are in the civil service, since that would require competence. It’s now undertaking a census. The guess is that it’s about one-in-three people. The constitution guarantees these jobs for life.
    We will never be Greece. We aren’t a Southern European country with an ingrained culture of tax avoidance and labor unrest. But our own shock troops of bankruptcy operate by Greek rules.
    Growth in public-sector wages and benefits has been outstripping growth in the private sector. Some states and localities are effectively Greek isles within America. Commuter rail workers in New York get $120,000 in annual compensation on average and can retire with a full pension at age 55. In the fiscal wreck of California, teachers and prison workers are the highest paid in the country.
    Josh Barro of the Manhattan Institute advocates a clean way to pull back: a public-sector pay freeze. If states and localities had held their wage and benefit growth to the same level as the private sector during the past three years, Barro writes, states would have avoided $36 billion in red ink.
    A lesson of Greece is that once the markets don’t believe a debt-riddled government, they can turn on it quickly and savagely. It’s best not to get anywhere close to that point.
    By the calculations of Jagadeesh Gokhale of the Cato Institute, Greece’s debt is 875 percent of its GDP when pension obligations are included. Sounds outlandish. But the figure for the U.S., including programs like Medicare and Social Security, is 500 percent. The worst thing we could do is to add to the burden with an onerous new spending program, pushed by the unions and justified with Greek-style budgetary math.
    Of course, that’s a working definition of ObamaCare.
    In Greek tragedy, the hero always realizes his own flaw or mistake too late. Something for retiring public-sector union honcho Andy Stern to contemplate as he takes his seat, amazingly enough, on President Barack Obama’s debt commission.
    Rich Lowry is editor of the National Review.
    (c) 2010 by King Features Synd., Inc.

    Greece’s largest public-sector union is taking to the streets to wage a “social battle” against austerity measures.This is very unfortunate news for austerity, since it has never fought a battle — social or otherwise — with the unions in Greece that it hasn’t lost in a rout. Although this time the stakes are much higher — a debt crisis with global implications that The Economist has dubbed “Acropolis Now.”The European Union and the International Monetary Fund have extended Greece a $145 billion bailout over three years in exchange for a budgetary clampdown so severe it would make even fiscal ascetics yelp in pain. As the financial analysts say, there’s considerable “implementation risk.” In other words: Don’t hold your breath.The Greeks got to this point the old-fashioned way: They spent more money on the public sector than they possibly could afford, and then lied about it. Last year, they announced that their deficit wasn’t 3.7 percent of gross domestic product as advertised, but 12.7 percent. Only in Athens does a multiplier of more than 3 qualify as a rounding error.Public wages and pension payments absorb half of the Greek national budget. The government doesn’t know exactly how many people are in the civil service, since that would require competence. It’s now undertaking a census. The guess is that it’s about one-in-three people. The constitution guarantees these jobs for life. We will never be Greece. We aren’t a Southern European country with an ingrained culture of tax avoidance and labor unrest. But our own shock troops of bankruptcy operate by Greek rules.Growth in public-sector wages and benefits has been outstripping growth in the private sector. Some states and localities are effectively Greek isles within America. Commuter rail workers in New York get $120,000 in annual compensation on average and can retire with a full pension at age 55. In the fiscal wreck of California, teachers and prison workers are the highest paid in the country.Josh Barro of the Manhattan Institute advocates a clean way to pull back: a public-sector pay freeze. If states and localities had held their wage and benefit growth to the same level as the private sector during the past three years, Barro writes, states would have avoided $36 billion in red ink.  A lesson of Greece is that once the markets don’t believe a debt-riddled government, they can turn on it quickly and savagely. It’s best not to get anywhere close to that point. By the calculations of Jagadeesh Gokhale of the Cato Institute, Greece’s debt is 875 percent of its GDP when pension obligations are included. Sounds outlandish. But the figure for the U.S., including programs like Medicare and Social Security, is 500 percent. The worst thing we could do is to add to the burden with an onerous new spending program, pushed by the unions and justified with Greek-style budgetary math. Of course, that’s a working definition of ObamaCare.In Greek tragedy, the hero always realizes his own flaw or mistake too late. Something for retiring public-sector union honcho Andy Stern to contemplate as he takes his seat, amazingly enough, on President Barack Obama’s debt commission.
    Rich Lowry is editor of the National Review.
    (c) 2010 by King Features Synd., Inc.

    Also on The Madison Record
    Journey Middle agrees on Chelsea Young as ‘Teacher of the Year’
    Madison, Madison County Record, News, ...
    Journey Middle agrees on Chelsea Young as ‘Teacher of the Year’
    Gregg Parker 
    June 25, 2025
    MADISON – When Chelsea Young moved to Madison in 2016, Madison City Schools held “a reputation for academic excellence and for one of the best distric...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    Columbia recognizes Annabel Richter as ‘Staff Member of the Year’
    Madison, Madison County Record, News, ...
    Columbia recognizes Annabel Richter as ‘Staff Member of the Year’
    Gregg Parker 
    June 25, 2025
    MADISON – Annabel Richter’s work can confirm that a student has a solid path to a well-rounded education. Columbia Elementary School’s faculty and sta...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    ‘Because of Jesus’ summer camp nurtures 130 youth in The Church of Jesus Christ of Latter-day Saints
    Madison, Madison County Record, News, ...
    Summer camp
    ‘Because of Jesus’ summer camp nurtures 130 youth in The Church of Jesus Christ of Latter-day Saints
    Gregg Parker 
    June 25, 2025
    MADISON - A local church’s special event connected on a personal level with 130-plus children who celebrated faith and friendship. Starting summer in ...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    Little Booths Market Day to premiere for young retailers
    Living, Madison, Madison County Record, ...
    Little Booths Market Day to premiere for young retailers
    Downtown event to premiere in July for young entrepreneurs
    Gregg Parker 
    June 25, 2025
    MADISON – A special event for young, aspiring entrepreneurs and vendors will debut with Little Booths Market Day on July 12. Little Booths Market Day ...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    TARCOG asks for input on services that benefit senior citizens
    Living, Madison, Madison County Record, ...
    TARCOG asks for input on services that benefit senior citizens
    Gregg Parker 
    June 25, 2025
    HUNTSVILLE - Top of Alabama Regional Council of Government or TARCOG wants your input. Affiliated with TARCOG, the Area Agency on Aging is conducting ...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    Heart of the Valley YMCA hires Rob Gray as president
    Living, Madison, Madison County Record, ...
    Heart of the Valley YMCA hires Rob Gray as president
    gregg@themadisonrecord.com 
    June 25, 2025
    By GREGG PARKER MADISON COUNTY -- Heart of the Valley YMCA has appointed a new president to lead the organization. Rob Gray has accepted the position ...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}
    Mitch Daly on the move: Former Bob Jones standout moving from Trash Pandas to 66ers
    Madison County Record, News, Sports, ...
    Mitch Daly on the move: Former Bob Jones standout moving from Trash Pandas to 66ers
    Bob Labbe 
    June 18, 2025
    MADISON- The Rocket City Trash Pandas has made a series of player moves including Mitch Daly. The Bob Jones High graduate and only local player to sui...
    School leaders urge parents for feedback about rezoning
    A: Main, Bob Jones High School, Madison, ...
    School leaders urge parents for feedback about rezoning
    Gregg Parker 
    June 18, 2025
    MADISON – With their continuous honors, Madison City Schools students have proven their mastery of the ‘three Rs – Reading, ‘Riting and ‘Rithmetic.’ H...
    {"epopulate_editorials_prism":"epopulate_editorials_prism", "madison-record":"Madison Record"}{"madison-record":"Madison Record"}

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    ❮ ❯
    Get Legals or Public Notices Published
    Latest Local News
    Journey Middle agrees on Chelsea Young as ‘Teacher of the Year’
    Journey Middle agrees on Chelsea Young as ‘Teacher of the Year’
    MADISON – When Chelsea Young moved to Madison in 2016, Madison City Schools held “a reputation for academic excellence and for one of the best distric...
    June 25, 2025
    Columbia recognizes Annabel Richter as ‘Staff Member of the Year’
    Columbia recognizes Annabel Richter as ‘Staff Member of the Year’
    MADISON – Annabel Richter’s work can confirm that a student has a solid path to a well-rounded education. Columbia Elementary School’s faculty and sta...
    June 25, 2025
    ‘Because of Jesus’ summer camp nurtures 130 youth in The Church of Jesus Christ of Latter-day Saints
    ‘Because of Jesus’ summer camp nurtures 130 youth in The Church of Jesus Christ of Latter-day Saints
    MADISON - A local church’s special event connected on a personal level with 130-plus children who celebrated faith and friendship. Starting summer in ...
    June 25, 2025
    Little Booths Market Day to premiere for young retailers
    Little Booths Market Day to premiere for young retailers
    MADISON – A special event for young, aspiring entrepreneurs and vendors will debut with Little Booths Market Day on July 12. Little Booths Market Day ...
    June 25, 2025
    TARCOG asks for input on services that benefit senior citizens
    TARCOG asks for input on services that benefit senior citizens
    HUNTSVILLE - Top of Alabama Regional Council of Government or TARCOG wants your input. Affiliated with TARCOG, the Area Agency on Aging is conducting ...
    June 25, 2025

    More Local News

    Our Latest E-edition
    Read the most recent edition
    Latest Stories
    MVP urges everyone to turn out for ‘Big Weekend of Service’
    MVP urges everyone to turn out for ‘Big Weekend of Service’
    MADISON – Madison Visionary Partners or MVP invites all ages, backgrounds and aptitudes to join hometown volunteer forces during the Big Weekend of Se...
    June 18, 2025
    For 6th year, Matt Curtis Real Estate named no. 1 in state
    For 6th year, Matt Curtis Real Estate named no. 1 in state
    HUNTSVILLE - For the sixth consecutive year, Matt Curtis Real Estate has been ranked as the no. 1 real estate team in Alabama. In addition, this team ...
    June 18, 2025
    Bob Jones student wins in NYC challenge for musical theatre
    Bob Jones student wins in NYC challenge for musical theatre
    MADISON – For his talent in composition, Karsten Wallace of Madison is a winner in the 2024-2025 Musical Theater Songwriting Challenge for High School...
    June 18, 2025
    Liberty student among finalists in National Science Bee
    Liberty student among finalists in National Science Bee
    MADISON – His solid, technical background earned Ryan Ranjan a top place in the 2025 National Science Bee, organized by International Academic Competi...
    June 18, 2025
    Local teen sets Guinness World Record for Girl Scouts Silver Award
    Local teen sets Guinness World Record for Girl Scouts Silver Award
    MADISON - Madeline Harper was so determined to achieve the Silver Award in Girl Scouts that she decided to set a world record to reach it. Madeline is...
    June 11, 2025
    poll
    Latest Sports
    Mitch Daly on the move: Former Bob Jones standout moving from Trash Pandas to 66ers
    Mitch Daly on the move: Former Bob Jones standout moving from Trash Pandas to 66ers
    MADISON- The Rocket City Trash Pandas has made a series of player moves including Mitch Daly. The Bob Jones High graduate and only local player to sui...
    June 18, 2025
    Daly returns home to play for Trash Pandas
    Daly returns home to play for Trash Pandas
    MADISON - Since birth, Mitch Daly has always been on the move as his father, Ed, is a four-star general in the U.S. Army causing him to pack up his wi...
    May 26, 2025
    Thousands expected for Memorial Day’s Cotton Row Run
    Thousands expected for Memorial Day’s Cotton Row Run
    HUNTSVILLE - The Cotton Row Run is a community event. The annual Memorial Day extravaganza, held in downtown Huntsville, again this year will attract ...
    May 20, 2025
    Madison Academy girls surge into soccer finals
    Madison Academy girls surge into soccer finals
    HUNTSVILLE – Madison Academy entered the state soccer tournament scoreless in three previous games at John Hunt Park, including against Donoho last se...
    May 9, 2025
    Have bat, will travel: Bob Jones seeks offense on road in semifinals
    Have bat, will travel: Bob Jones seeks offense on road in semifinals
    MADISON – Bob Jones has left little margin for error as it seeks to repeat as Class 7A state baseball champions. The Patriots, however, have done just...
    May 7, 2025

    More Sports Stories

    x

    Sections

    • Home
    • News
    • Sports
    • Opinion
    • Lifestyles
    • Obits
    • Business
    • Sponsored Content
      • Home
      • News
      • Sports
      • Opinion
      • Lifestyles
      • Obits
      • Business
      • Sponsored Content

    Other Publications

    Madison Living Logo Living 50 Plus Logo

    Services

    • About Us
    • Subscribe
    • Advertise With Us
    • Policies
    • Terms of use
    • Submit a news tip
    • Submit a photo
    • Birth announcement
    • Birthday announcement
    • Engagement announcement
    • Wedding announcement
    • Sign Up For Our Free Newsletter
      • About Us
      • Subscribe
      • Advertise With Us
      • Policies
      • Terms of use
      • Submit a news tip
      • Submit a photo
      • Birth announcement
      • Birthday announcement
      • Engagement announcement
      • Wedding announcement
      • Sign Up For Our Free Newsletter

    Follow Us

    Copyright

    © , The Madison Record