Greece takes steps to solve its problems, - WSJ.com

Why exports are needed: Greece takes steps to solve its problems, - WSJ.com:

"More on why exports matter and are a necessity for socialist states:

Talking about 'exports' and lack of 'consumer demand', one can't help but wish to see something mentioned about the 'labor conundrum' and the impact of taxes on 'economic utility'.

Economic utility basically describes the relative desirability of purchasing one good over another. At some point, the desirability (read: utility) goes out the window when the cost (read: economics) goes too high. So, if a consumer might like to buy a car for EUR 20,000 (his or her utility function) but VAT and other taxes raised the cost to say EUR 40,000 (as in Portugal), then the consumer will not want to buy the car.

Thus, as taxes distort the pricing mechanism, consumers naturally both can afford less and want less.

So, the consumer in question might actually be making cars, but the artificial expenses of the taxes drives the price out of his or her range of purchasability. Result: diminished consumer demand and eventually less production and fewer jobs.

This is the economic utility side.

The same is true with the labor conundrum, which reduces the pay of workers to provide the government with funds to pay benefits to others. (An egregious example of this would be New York City police benefits where there are far more retired officers collecting pensions than their are working officers.)

Thus, the worker may only get 1/5 of what it costs the employer to hire the worker. The other 4/5th goes to non-productive pockets. Thus, again, the worker has less to purchase goods with.

As above, less incentive to work, less purchasing power - eventually, less employment.

Hello the great union world of socialism and the Democratic party."