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Saturday Art: Influential Authors: Harold Robbins

4:05 am in Art, Culture, Influential Authors by dakine01

Los Herederos

Spanish publication of The Inheritors

Let me state right up front that I understand it is almost an oxymoron to equate Harold Robbins‘ writing to both art and influence. A few weeks ago when I wrote about Herman Wouk, someone commented about one of his books as a “potboiler.” Well, Robbins’ entire career is seemingly potboilers. Yet that does not preclude him from being influential. This review of a bio of Robbins from the New York Times covers part of the reason:

He’d found his gimmick: exploitation, with garish facsimiles of Lana Turner (“Where Love Has Gone”), the South American playboy Porfirio Rubirosa (“The Adventurers”) and the Ford automobile dynasty (“The Betsy”), among others, paraded en déshabillé for our enjoyment.

Robbins’ wiki intro is sparse:

Harold Robbins (May 21, 1916 – October 14, 1997) was an American author of popular novels. One of the best-selling writers of all time, he penned over 25 best-sellers, selling over 750 million copies in 32 languages.

Robbins apparently created a bit of a myth of Harold Robbins, claiming to be:

a Jewish orphan who had been raised in a Catholic boys home. In reality he was the son of well-educated Russian- and Polish-Jewish immigrants.[1] He was raised by his father, who was a pharmacist, and his stepmother in Brooklyn.

Robbins did not invent sex for his books but it looks like he was the first to exploit fairly explicit sex scenes for the best seller lists. The review of his bio from The NY Times linked above is fairly adamant about Robbins being without talent and only in it for the money yet it is hard to sell that many books with no talent at all.

The first Robbins book I read was The Adventurers. The movie version is, according to wiki, one of the ten worst movies ever made:

The film became the one movie no one wanted to see. It opened to a storm of resentment from critics and audiences who felt the film did not present anything new in the jet set genre. Today it is mentioned in the The Official Razzie Movie Guide as one of the Top Ten Best Bad films of all time. The director Lewis Gilbert said candidly on June 25, 2010 on the BBC radio programme “Desert Island Discs” that The Adventurers was a “terrible film.”. He said “I had a terrible film called The Adventurers which was a big, sprawling, very expensive film which was a disaster. I should never have made it. It’s one I’m not proud of.”

Yes, I saw the movie as well as read the book. Candice Bergen was one of the stars. To release some vestigial sexism, do I need to explain further?

The Carpetbaggers is probably Robbins best known work. Wiki says it is “…loosely based on a composite of Howard Hughes, Bill Lear, Harry Cohn, and Louis B. Mayer” but Hughes is rather obvious as the primary model for Jonas Cord. The movie starred George Peppard, Alan Ladd, and Carroll Baker. Steve McQueen starred in a prequel movie, Nevada Smith as the young man of the character Alan Ladd played.

I drifted away from Robbins writing in the early ’70s but had read most of his books up to then. A Stone For Danny Fisher became an Elvis movie, King Creole. His first book, Never Love a Stranger was also the first movie of a Robbins book with the film starring John Drew Barrymore (yes, that is Drew Barrymore‘s father.) Where Love Has Gone had Bette Davis and Susan Hayward among the cast of the movie.

Robbins did not invent the roman å clef but he surely did not shy from stealing topics from real life. He made a living writing trash but a lot of us read that trash.
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Always Enough Time to Do It Over

11:47 am in Government, Politics, Technology by dakine01

If you have been reading my posts over these last few years, you are most likely aware that my chosen career field is Software Quality Assurance and Testing so needless to say, I have found the contretemps about the Affordable Care Act web site to be quite interesting. A friend from my small hometown in Kentucky last Wednesday (October 23) posted a link to a New York Times opinion piece by Dr Ezekiel Emanuel about the problems:
"If you build it, he will come"

First, the Obama administration acted too slowly. It waited too long to release specific regulations and guidance on how the exchange would work. It also waited too long to begin building the physical Web site. These delays were largely because the administration wanted to avoid election-year controversy. This may have been a smart political move in the short term, but it left the administration scrambling to get the IT infrastructure together in time, robbing it of an opportunity to adequately consult with independent experts, test the site and fix any problems before it opened to the public.

Second, the ostensible quarterback of the federal health care exchanges, with responsibility for integrating all the various components, is the Centers for Medicare and Medicaid Services. While the agency has expertise in issuing reimbursement rules and overseeing large-scale claims-processing operations, it has little expertise in creating a complex e-commerce Web site. More important, there was no single senior person in the agency tasked with running the exchange rollout.

Finally, this was not the first health insurance exchange ever created. Massachusetts has had years of experience with its exchange, and there are private exchanges, like eHealth, where individuals can shop for insurance. In addition, many states, like California, Connecticut and Kentucky, had already spent around two years building their exchanges, gaining experience and proving it was possible to create a good customer shopping experience. It does not appear that the Centers for Medicare and Medicaid Services or its contractors spent much time reviewing these models and adopting best practices.

My friend had posted a comment with the link about how he was curious about the technical design, project plan, QA processes and other software development metrics and planning used. I added my 2¢ worth in the following comment:

I will go out on a limb here and with no evidence (other than experience in large complex applications) state that the QA process was probably cut short due to other “unexpected problems”

Now just imagine my (lack of) surprise when I saw news reports on Thursday about there being extremely limited testing of the site. From McClatchy:

WASHINGTON — Private contractors working on the troubled federal health insurance marketplace told a congressional committee Thursday that they needed several months, but only had two weeks, before the launch date to fully test what could be the most complex government IT system in U.S. history.

I have worked on large, complex client-server applications for child welfare databases for various states. I have tested various applications or overseen testing as an IV&V contractor in multiple states. I was not at all surprised to hear that testing had been given short shrift because testing is pretty much always given short shrift. Invariably, the project schedule and “go-live” dates are seemingly graven in stone so when problems crop up, time has to be taken from other areas in order to meet the required date. So time most frequently is taken from testing. Hyperbole requires me to say at this point that “I can’t imagine the pressure the testers were under to meet the schedule” but in fact, I can very well imagine the pressure they were under. It is a cliche but many software development professionals can attest, there is never enough time to do things right the first time but there is always enough time to do things over.

In the interest of full disclosure, I will now state that the overall contractor for the effort, CGI Federal, is part of what was a former employer of mine, American Management Systems although I was part of the State and Local Government Group rather than the Federal (non-DoD) Group.

While I am among the uninsured, I have not gone to the web site for a couple of reasons. First, I am a veteran so will be checking in a couple of weeks to see what coverage I am eligible for through the Veterans Administration. I have not checked with the VA yet because I did not want to be bothering them while they were dealing with the recent shutdown. Secondly, I am residing in Kentucky which has its own newly launched insurance exchange (as noted by Dr Emanuel above) so if I am not covered through the VA, then I will enroll through KYnect along with a few thousand other fellow Kentuckians.

For what it’s worth, CNBC had this article on Tuesday (October 22) with some quotes from a former president of Oracle:

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Oh the Oppression! Oh the Tyranny! Oh the doG-awful Whining With No Reason!

10:55 am in Government, Media, Politics by dakine01

I was looking through various “news” web sites this morning when I came across this article from Tiger Beat On the Potomac (h/t Mr Pierce). The headline alone made me shake my head, “Wall Street gets misty as Bloomberg departs” then it just got worse as I read the “article”:

Michael Bloomberg - Cartoon

Michael Bloomberg – Cartoon

Michael Bloomberg isn’t leaving office until January but Wall Street is already beginning to miss the New York City mayor — and bracing for a possible backlash from his replacement.

In his 12 years leading the city, Bloomberg has been a vocal champion of New York’s business and banking communities. When the knives have come out, he has time and again come to the defense of the financial services industry without batting an eye at the political reality that advocating for Wall Street is a highly unpopular move for public officials.

Awwww. Da poor widdle babies have their fee-fees hurt by those big bad people, led by a politician who thinks they might do a bit more to pay for services:

Many in New York’s business and financial elite, stung by the abrupt ascent of Bill de Blasio, an unapologetic tax-the-rich liberal, are fixated on a single question: What are we going to do?

The idea that someone like DiBlasio might replace Bloomberg as NYC Mayor seems to set alarums blaring among the power elite and rich in New York.

Give. Me. A. Fucking. Break.

A couple of years or so ago, I wrote a diary after reading some whines from JP Morgan/Chase CEO Jamie Dimon. Now we have more of the rich 1% from Wall St whining about how their taxes might go up and how dare he! From Raw Story:

New York City, like much of the nation, is living with a vast divide between rich and poor. In appearances leading up to Tuesday’s primary election, Brooklyn-based Democrat di Blasio decried these inequalities, saying, “We are not, by our nature, an elitist city. We are not a city for the chosen few,” statements that have set off alarm bells among the city’s top tier of business leaders and the well-to-do.

Oh those oppressed Titans of Wall St and Masters of the Universe! They are so oppressed, just like the Fundamentalist Christians and straight white men, they never get things their way. Why, they just might have to go on Food Stamps after they pay their taxes in a DiBlasio administration:

When it comes to average per capita wealth, New York City has been eclipsed by a handful of other locales, but the city that never sleeps still holds sway in the public imagination as the capital of capital, the center of the financial industry, and a place where a $235,000 salary still only counts as middle class. But, as a couple of recent articles show, New York isn’t just a center of American wealth: it’s also a center of American wealth inequality, a place where the divide between the very rich and the very poor is sometimes only a matter of a few hundred feet … as the crow flies.

I’m sure you’ll pardon me if I shed no tears for these members of the Clueless Class.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor
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“I have a Dream…”

12:05 pm in Economy, Politics, Unemployment by dakine01

Fifty years ago today, August 28, 1963, I was an eleven year old boy. I do not recall if we had started back to school on this date but may well have. As it was, I was no more than a week or so maximum away from being a sixth grader.

IMG_8526

Location of Dr King’s speech, August 28, 1963

I do not have any memories of Dr King’s speech (pdf) or the March on Washington. I was vaguely aware of the actions of Bull Connor in Birmingham, AL but the church bombing in Birmingham that killed the four little girls was still a couple of weeks away and we were still a year away from Freedom Summer. Little of this would have penetrated or did penetrate my consciousness in small town Kentucky.

And then.

And then.

Fast forward to the fall of 1970 and my freshman year at Western Kentucky University. At the time, Western had a required, one credit hour course, “Freshman Orientation,” that met for one hour a week for the entire first semester of the freshman year. I do not remember the name of the professor who taught my class of about forty freshmen. I could probably find his name on my transcripts if I knew where they were but it is not important. What is important is that one day, a month or so into the semester, he walked into the classroom, turned on the tape recorder sitting on the desk in the front and walked out. It was a tape of Dr. King’s speech and played entirely. Afterwards, the professor returned to the room and we spent the rest of the hour discussing the speech from the distance of seven tumultuous years.

Has Dr. King’s dream been fulfilled, fifty years later? Not hardly. And it is not just his desire for racial justice that is still lacking (as Mr Pierce points out, this has not been achieved no matter the ravings of people such as those at The National Review.) And contrary to the desires of one Jonah Goldberg, Dr King’s message was very much about economic justice as well as racial justice and equality. Dr. King was assassinated as he was in Memphis to support the striking Memphis Sanitation workers. Dr. King, along with the Southern Christian Leadership Conference, was the organizer of the Poor People’s Campaign. From the Poor People’s Campaign history:

The Poor People’s Campaign did not focus on just poor black people but addressed all poor people. Martin Luther King jr. labeled the Poor People’s Campaign the “second phase,” of the civil rights struggle – setting goals such as gathering activists to lobby Congress for an “Economic Bill of Rights,” Dr. King also saw a crying need to confront a Congress that had demonstrated its “hostility to the poor ” – appropriating “military funds with alacrity and generosity,” but providing “poverty funds with miserliness.”

Under the “economic bill of rights” the Poor People’s Campaign asked for the federal government to prioritize helping the poor with an antipoverty package that included housing and a guaranteed annual income for all Americans.

My bold

Yesterday’s New York Times had an opinion piece from Joseph Stiglitz where Stiglitz describes how Dr King’s speech has impacted his life in economics:

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This is the “new normal”

12:19 pm in Economy, Jobs, Unemployment by dakine01

Roadside 'Jobs' sign stuck in an old couch

Photo: Doug Geisler / Flickr

The ADP Report on private sector jobs came out today and showed an increase of 158K jobs. David Dayen at the FDL News Desk discusses this report and the Bureau of Labor Statistics report that will be issued tomorrow morning (Friday, November 2):

Plug this all in and what have you got? The consensus forecast calls for an increase in 125,000 jobs. That would be an increase from last month’s increase of 114,000, but below the increases in July and August (August and September will get revised in the report). This generally matches what we’re seeing in the ancillary reports, and shouldn’t be a number that would arouse joy or sadness in either Presidential campaign. However, with the volatility of last month’s topline unemployment rate, derived from the household survey, I wouldn’t be surprised if you saw it increase from the current level of 7.8%.

Either way, it’s a preliminary report, and we probably shouldn’t put as much weight on it as we will, especially with the political implications headed into the election.

While the weekly report of initial unemployment claims was lower than expected (economists surprised!), even this moderately good news is not all that great.

The reality for many millions of us among the long term un and underemployed is the good jobs just are not there. At the end of August, Catherine Rampell of the NY Times had an article headlined “Majority of New Jobs Pay Low Wages, Study Finds.” As I noted in this post, it was very similar to an earlier post from April ’11 I had written that was based on a Washington Post article. Both the Times article and the Post article were based on reports from the National Employment Law Project.

Sunday in the NY Times, Steven Greenhouse had this article on how employers in retail and hospitality industries use (and abuse) part time workers:

But in two leading industries — retailing and hospitality — the number of part-timers who would prefer to work full-time has jumped to 3.1 million, or two-and-a-half times the 2006 level, according to the Bureau of Labor Statistics. In retailing alone, nearly 30 percent of part-timers want full-time jobs, up from 10.6 percent in 2006. The agency found that in the retail and wholesale sector, which includes hundreds of thousands of small stores that rely heavily on full-time workers, about 3 in 10 employees work part-time….snip…

A 2011 survey of 436 employees at retailers in New York City, as diverse as luxury establishments on Fifth Avenue and dollar stores in the Bronx, found that half of the city’s retail workers were part-time and only one in 10 part-time workers had a set schedule week to week. One-fifth said they always or often had to be available for call-in shifts, according to the survey, which was overseen by researchers at City University of New York.

…snip…

Mr. Flickinger, the retail consultant, said companies benefited from using many part-timers. “It’s almost like sharecropping — if you have a lot of farmers with small plots of land, they work very hard to produce in that limited amount of land,” he said. “Many part-time workers feel a real competition to work hard during their limited hours because they want to impress managers to give them more hours.”

What? Could someone have actually spoken a truth here? The modern day wage slave, complete with sharecropping as the ideal.

While CNN has an article this morning attempting to paint the rosy glasses scenario on how the jobs are not all part time minimum wage, even they have to acknowledge the reality of the lower wage since 24% of the “new” jobs are in hospitality and retail:

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Oh Noes! Wall Street Might Not Get Their Bonuses!

3:26 pm in Uncategorized by dakine01

So I was doing my standard web surfing this AM after I had checked the (non-existent) jobs listings when I saw this from Bloomberg with the title, “Half of Wall Street Employees Expect Bigger Bonuses”:

Almost half of Wall Street employees expect their year-end bonuses to be higher this year than they were a year ago, according to an eFinancialCareers.com survey.

Of the 911 U.S. financial professionals who responded to the e-mailed survey, 48 percent anticipate a higher payout, up from 41 percent in a similar survey last year, the job-search website said today in a statement. Employees of hedge funds and other asset managers were more optimistic than those at banks and broker-dealers, according the statement. Of the respondents, 82 percent work for U.S.-based companies.

Well imagine my surprise this afternoon when I see this one from Bloomberg titled “Wall Street Bonus Pool Seen Shrinking for Second Straight Year”:

Wall Street’s cash bonus pool is likely to fall for a second straight year as the financial industry grapples with market turmoil, economic weakness and new rules, New York state Comptroller Thomas DiNapoli said.

Revenue and compensation trends have “edged downward” since February, when DiNapoli estimated that the 2011 pool for Wall Street declined by 13.5 percent to $19.7 billion, the comptroller said today in a report.

The New York Times presented it this way this afternoon:

It still pays to be on Wall Street.

Even as the financial industry in New York has slashed jobs by the thousands, the average worker who remains is collecting a near-record paycheck.

In a report released on Tuesday, the New York State Comptroller, Thomas P. DiNapoli, said that the average pay package of securities industry employees grew slightly last year and was up 16.6 percent over the past two years, to $362,950. Wall Street’s total compensation rose 4 percent last year to more than $60 billion.

CNBC appears to be trying to split the differences with this report titled “Wall Street Expects Bigger Bonuses But May Not Get Them” as they report on the same survey that Bloomberg covered in the first link:

Revenue is down on Wall Street but expectations for bonuses are up — at least for some workers who have seen their pay shrink since the financial crisis explosion.

A survey from eFinancial Careers shows 48 percent of workers on the Street are looking for higher bonuses than 2011. Expectations are high even as investment banking revenue is down 11 percent for the same period last year while the securities industry overall saw revenue fall 7 percent in the first half.

At the same time, some of the larger firms have been doing better as the headwinds from the European debt crisis subside and hopes grow that the industry will close the year out strongly.

Meanwhile as Wall Street whines its way along, our (not-so-favorite) Masters of the Universe, Lloyd Blankfein and Jamie Dimon are once again daring to spout their nonsense. Jon Walker at FDL Action presents this:

What I find most ironic about these CEO deficit hawks complaining about the “uncertainty” that is hurting the economy is that they are the ones responsible for helping to create said uncertainty to begin with. The deficit obsession created the uncertainty about raising the debt ceiling. Similarly, they constantly pushed for a big deficit deal resulting in the creation of the sequesters, which are seen as a big source of the fiscal uncertainty at the moment. The main “uncertainty” about government policy right now is how the government will clean up the mess created by past efforts to force a deficit deal.

But hey, MotU never have to be accountable for destroying the economy. After all, they deserve those millions dollars of bonuses right? Destroying the global economy is hard ass work so they must be compensated for it.

Meanwhile, CNN actually touches base with the real world with this article on part time jobs being the new normal in employment. Notice how much attention is paid to the ravings of Blankfein and Dimon and the Wall St WATB versus the attention paid to the rest of us in the real world?

And because I can:
Happy Birthday John. RIP

Cross posted from Just A Small Town Country Boy by Richard Taylor

And the Occasional Truth Gets Spoken

6:12 am in Economy, Financial Crisis, Jobs, Unemployment by dakine01

Every now and then, I seem to run across news articles and/or headlines that seem to be just a bit of an understatement even as they are quite factual. Usually it seems, we get things like this one from NBC News yesterday:

New jobless claims take surprise jump

New claims for unemployment benefits took an unexpected jump in the latest week, raising more concerns about the struggling job market and providing further incentive for the Federal Reserve to jump in and help the economy.

As I have written before, it surely does seem as if the economist are ALWAYS surprised. Which still makes me wonder how they manage to keep their jobs as in most career fields, if you are always surprised by what happens, pretty soon you’re looking for a new career.

A couple of days ago, I saw this piece from Alison Linn at the Today show with the headline:

Many in middle class say they are doing worse financially

The Great Recession and weak recovery have left slightly fewer Americans feeling like they are part of the middle class, and many who do still identify themselves as such say they are now worse off.

A new and comprehensive survey on how the middle class feels, released Wednesday by Pew Research Center, finds 42 percent of people who identify themselves as middle class say they are in worse shape financially than before the recession began. About 32 percent are in better shape, and the rest either don’t know or see no difference.

I am part of that 42% though in fact, I have been forced to accept that by income, I am no longer remotely close to “middle class.” I am poor.

NBC News had this piece last night that is very much a companion to the Linn piece:

Stronger economy delivers smaller paystubs for most of us
With recoveries like this one, who needs recessions?

The average household income has fallen steadily for nearly everyone since the start of the economic expansion in June 2009, with average income dropping 4.8 percent in the three years since the upturn began, according to a report released Thursday.

High unemployment, outsourcing of jobs and generally slow economic growth have restrained income for households during one of the weakest and most prolonged recoveries on record, according to the report from Sentier Research.

Last summer, I wrote this post about the interconnectedness of the global economy. Today, the NY Times has this article on how China is now having to deal with surplus inventory:

GUANGZHOU, China — After three decades of torrid growth, China is encountering an unfamiliar problem with its newly struggling economy: a huge buildup of unsold goods that is cluttering shop floors, clogging car dealerships and filling factory warehouses.

The glut of everything from steel and household appliances to cars and apartments is hampering China’s efforts to emerge from a sharp economic slowdown. It has also produced a series of price wars and has led manufacturers to redouble efforts to export what they cannot sell at home.

This actually does make me wonder how long this headline from CNN will be true:

Romney: ‘Big businesses are doing fine’

It is a global economy and eventually what happens to one piece of that global economy WILL trickle down to the rest of the globe. Meanwhile we get to see pics of Prince Harry acting like a single, 27 year-old man visiting Las Vegas.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor

Economists try to explain why they were wrong on March jobs forecasts

10:49 am in Economy, Jobs by dakine01

Percent Job Losses in Post WWII Recessions, calculatedriskblog.com

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Once again, the economic community is scrambling to find the reasons why they were suprised by the March 2012 jobs report. The monthly report from ADP had private sector jobs at 209K increase for March 2012 which apparently led many economists to predict a similar number for the official report from the Bureau of Labor Statistics that was released on Friday.

Oops. Wrong again.

We have been seeing stories such as this from today’s NY Times about the “strong” jobs growth from earlier this year:

Although signs pointed to a strengthening economy earlier this year, the jobs report on Friday came with a message: don’t get ahead of yourself.

The country’s employers added a disappointing 120,000 jobs in March, about half the net gains posted in each of the preceding three months. The unemployment rate, which comes from a separate survey of households rather than employers, slipped to 8.2 percent, from 8.3 percent, as a smaller portion of the population looked for work.

120K jobs is not much more than is necessary to maintain the status quo of population growth (90K is the figure Dean Baker uses) and even 200K, while growing, does not appreciably put a dent in the long term un and underemployment rates. When there are 13M to 14M unemployed and 25M to 30M un and underemployed, 200K jobs is just not going to help all that much.

Surprisingly to me, the Benbernank may have been more realistic than many others (via Bloomberg.) Of course, the article goes on to quote Fed regional presidents as saying that the numbers, no matter how soft, probably won’t cause the Fed to actually, you know, do something to ease the un and underemployment problem. No matter that a primary part of the stated Federal Reserve Mission statement is to pursue “maximum” employment.

It does appear that the consensus being reported is to blame the warm weather from January and February for the lighter number for March. Here’s Dean Baker’s take: Read the rest of this entry →

How does an interconnected global economy avoid a global recession?

1:04 pm in Economy, Jobs, Unemployment by dakine01

(photo: athoshun/flickr)

(photo: athoshun/flickr)

Author’s Note: Please take a few minutes and Join the Firedoglake Membership Program today. FDL provides the tools that help me and others extend our reach with our rants so we need to support FDL when we can.

As I was surfing through various news sites this morning (April 2), I noticed a number of articles discussing problems with the European and US economies which lead directly to the question I have posed in the title of this post:

How does an interconnected global economy avoid a global recession?

Unfortunately, I do not know the answer but if I had to guess, it would be to say “It can’t.”

The first article I noticed was from tha AP via Yahoo titled, “Euro unemployment spikes to record 10.8 percent.” Reuters reported it as “Euro zone unemployment reaches near 15 year high“:

Unemployment in the euro zone reached its highest level in almost 15 years in February, with more than 17 million people out of work, and economists said they expected job office queues to grow even longer later this year.

Joblessness in the 17-nation currency zone rose to 10.8 percent – in line with a Reuters poll of economists – and 0.1 points worse than in January, Eurostat said on Monday.

Economists are divided over the wisdom of European governments’ drive to bring down fiscal deficits so aggressively as economic troubles hit tax revenues, consumers’ spending power and business confidence which collapsed late last year.

As a companion to these was this blog post from Reuters on youth unemployment across Europe: Read the rest of this entry →

Is the Greece Crisis a Preview of Coming Attractions?

4:39 pm in Economy by dakine01

Author’s Note: Please take a few minutes and Join the Firedoglake Membership Program today. FDL provides the tools that help me and others extend our reach with our rants so we need to support FDL when we can.

Let me start this by stating right up front that I do not pay near enough attention to happenings around the world and the Greek debt crisis is just one of those issues that I am aware of without really knowing all the ins and outs of the situation.

Nevertheless, I saw a headline this weekend that has me in full on WTF mode. Saturday morning a NY Times headline said “Greek Premier Faces Impasse Over Demand to Cut Private Wages.”:

ATHENS — Lucas Papademos faced his most difficult test as Greece’s interim prime minister on Friday when his three-month-old government reached an impasse over proposed demands by the country’s foreign lenders to reduce private-sector wages drastically in exchange for the aid the country needs to prevent default.

Now, I can understand why lenders would demand wage cuts for Public Sector employees. I can think it is incredibly stupid, short-sighted, and penalizing the wrong group of people but I can understand the logic behind it. But Euro zone leaders and banks requiring private sector wage cuts before restructuring debt for Greece just makes no sense at all.

A bit further down in the article though I do get a small hint here:

It was unclear exactly what sort of wage cuts the troika was demanding. Some news reports said the lenders were seeking changes that would reduce most private-sector salaries by as much as 25 percent; others said the group was insisting on a cut in the minimum wage that, at least directly, would affect fewer than 300,000 people.

The goal of any pay cuts would be to help make Greek workers, who are generally less productive than workers elsewhere in Europe, able to compete more effectively inside the euro zone, where countries share a common currency that does not allow devaluations to help even out differences in labor costs.

My bold. And I think that is the goal right there. Cut minimum wage. Read the rest of this entry →