Euro zone articles

Title: Greece tax burden reaches new settlers
Link: http://edition.cnn.com/2011/10/13/business/greece-tax-on-ex-pats/index.html
Summary:Settler from Englad who have moved to Crete are now paying 500$ more on tax monthly. This could harm their settlement in  Greece, and might force them to move back to England where they came from.Greece is on the edge of bankrupcy and it needs to improve its financial state by taxing rich people. This is the aim of the government in Greece - tax rich people. Big houses, cars, yachts or other luxury items will

Title: The OECD's Gurria on why the euro will survive
Link: http://edition.cnn.com/2011/10/13/business/angel-guria-oecd/index.html
Summary: The guy talked about problems in euro zone, which helped me understand the situation of the currency. Two countries have problems with debt, and one country, Greece, is in a crisis. Guirra also said that the long term goals will eventually help euro survive. Well, that is quite controversial - gives us something to talk about.

Title: Jose Manuel Barroso: "No one wants to replace Europe"
Link: http://edition.cnn.com/2011/10/13/business/barroso-marketplace-europe/index.html
Summary: Currency should make us stronger. Europen union as a nation has a lot of power. Noone wants to replace euro, and this says something about it.Europe has the biggest internal market in the world. The problems european union has, is able to solve.

Obama's stimulus plan

Mr. Obama has recently proposed a stimulus plan where he wants the taxes to be cut in order to help the economy to get moving. The tax cut is the biggest expense to the governemnt, but there also some aditional 190bn dollars spent on various projects which should provide jobs across the country. Half the tax for existing business should be past, and this should increase the supply, since now it is chepaer to produce the same amount. Also, if a new worker is hired, the tax is waived and therefore the business pays less to get more output.

Investments in infrastructure, modernization of school/vacant property, expanding unemployment benefits or subsidizing job trainings are some of the spendings Obama proposed. Will this work? The idea is clearly positive. But most of these are just short term solutions, and jobs created from modernization of school property for example won't help the workers over long term. The job trainings might not be efficient since it is now cheaper to make them, and people could charge the same amount for trainings and pay less, therefore making more money. So this could only be used for the people who are already working, and Obama doesn't want to help the people who are already working.

Despite all these new improvements that could be very useful, is it really good for the economy? The debt would have to be even higher, because these fincaces need to be somehow created to cover the costs for his plan. The opportunity cost for this amount of money is huge and the governemnt needs to consider this.