Monday, March 23, 2009

Why unemployment rate in Europe will grow and grow and grow...

"Given the abject collapse of "American-style Capitalism" based on "financial innovation," many now tout the superiority of the European version of Capitalism (i.e. one with a stronger social welfare safety net). But the unpleasant demographic and structural truth is that model is equally incapable of paying promised retirement and healthcare.

Government interference in terms of income tax, sales tax (19%), property tax, municipal tax, regulations, compulsory government health & disability insurance is on a scale which is unthinkable compared to America or Canada.
In Italy for instance, once you start hiring employees you've basically signed away your right to any kind of entrepeneural independence. It's practically impossible to fire them and you're weighted down by hefty social security payments (roughly double the net loan the employee receives).

Plus you're compelled to pay for playing recorded music in your business, pension payments into employee pension plans, fees for having a copier and so on and so forth. The only way to do it, make a good living and still have a relaxed social life is to do everything yourself and with your partner and hire on a very minimal part-time and temporary basis." Of two minds

That is exactly the answer

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