Deteriation of the European Middle Class?

I recently read an article that I got from a friend in the US (thank you Masca).

This is my response to it:

Well I guess that the simplistic answer would be thank you America…

So what do I think?

Well I think we are dealing with several factors.

1. All of the countries described in the article are countries that have failed to create a flexible and a higher educated workforce. If you look at what happened in the grandparents generation, most of that generation gained access to education and new work possibilities. And then the governments thought they had solved the problem, until former third world countries (read southeast asia) caught up with the level of education. On top of that those countries aren’t bogged down by rules such as the 35 hour work week and the impossibility of firing people (France and Germany). These factors have created none flexible workforces who are forced to stay in jobs that are disappearing or that they are not productive in (read they are bored…) My personal opinion is that Germany would have dealt with it had they not had to integrate Eastern Germany and carry the burden of the European union on their shoulders. In Frances case, it’s a blend of belief that they have the right system (some would call it arrogance) and that the top of the country really don’t give a shit. The Italian leaders? They really think that Italy can survive on selling the Italian way of life. And of they don’t give a katso either . I don’t know about Spain, but I think they are suffering because ironically their economy has now gotten so strong that the wages in Spain have gone up so they are losing their status of being the low cost production site of Europe. In short all of these countries need to relax labor laws, while at the same time providing social security and free education (yes the bill is steep). Or just wait it out till Chinese wages catch up with European one (which will take much shorter time then you think).

2. People have gotten used to other standards, the middle class now has 2 cars? (see article) What happened to people pilling on the bus, or driving your spouse to work and so on. Beyond this there is all the other stuff a normal family should have, television in every room, each child there own room and so fourth. Yes cost of fuel has gone up, but that’s because demand has gone up. Cost of food, is now, thanks to bio diesel, linked to fuel cost, which leads us back to the two cars. Second generation bio diesel is still far away, so I guess we will have to do it the Brazilian way and rely on the sugar (which is making all of us fat any way (which again raises fuel costs), so lets BURN it.

3. Thankfully people are generally eating better, more diverse and they want to eat things out of season, strawberries in January? This also increases the costs.

But yes going into Iraq has basicly hit the whole western world, so thank you George and please do sprint to the finish. I’ll give you a prize if you quit before July….