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Greece Starts Firing Civil Servants for First Time in a Century

Photo Credit: John KolesidisPushed by its European creditors amid its crippling economic crisis, Greece began this week to do something it hasn’t done in more than 100 years: fire public-sector workers en masse.

Following weeks of tough negotiations with its lenders – the “troika” of the International Monetary Fund, the European Union, and the European Central Bank – the Greek government started laying off public-sector workers in an effort to implement the austerity that the troika has demanded. The first two civil servants were let go on Wednesday under a new law that speeds up the process – one, a policeman, for stealing debit cards, and the other for 110 days of unexcused absence.

The mass layoffs were announced last week in a televised address by the Greek prime minister himself, Antonis Samaras. Despite the massive unemployment in Greece, the goal of the government has become the laying off of 180,000 civil servants by 2015. “This is not a human sacrifice,” said Prime Minister Samaras. “It’s an upgrading of the public sector and it’s one demand of Greek society.”

Samaras though, promised new positions to be created: “An equal number [of employees] will be hired on merit,” he added.

A century without layoffs

Civil servants’ jobs have been protected by a law that dates back to the 1880s, which became enshrined in the century-old Greek constitution. Until that provision became law, each newly elected government would sack the civil servants hired by the previous government to replace them with their own party members, creating civil unrest and a dysfunctional state.

Read more from this story HERE.

Video: The Real Danger Is Not Going Over The ‘Fiscal Cliff’

In an interview with CNBC earlier this week, economist Peter Schiff suggested that the time for austerity is now. The real danger, he says, is not going over the ‘fiscal cliff.’

In his view, continuing down the road we’re on will only make matters worse, and eventually Asia will stop loaning money to a dead-beat customer who can’t pay back its loans.

See interview below.

The Coming Age of Austerity

photo credit: KTL Shutterbug“Are the good times really over for good?” asked Merle Haggard in his 1982 lament. Then, the good times weren’t over. In fact, they were coming back, with the Reagan recovery, the renewal of the American spirit and the end of a Cold War that had consumed so much of our lives.Yet whoever wins today, it is hard to be sanguine about the future. The demographic and economic realities do not permit it.

Consider. Between 1946 and 1964, 79 million babies were born — the largest, best-educated and most successful generation in our history. Bill Clinton and George W. Bush, both born in 1946, were in that first class of baby boomers.

The problem. Assume that 75 million of these 79 million boomers survive to age 66. This means that from this year through 2030, an average of nearly 4 million boomers will be retiring every year. This translates into some 11,000 boomers becoming eligible for Medicare and Social Security every single day for the next 18 years.

Add in immigrants in that same age category and the fact that baby boomers live longer than the Greatest Generation or Silent Generation seniors, and you have an immense and unavoidable increase coming in expenditures for our largest entitlement programs.

Benefits will have to be curbed or cut and payroll taxes will have to rise, especially for Medicare, to make good on our promises to seniors.

Read more from this piece HERE.