Austerity Alone is Not the Perfect Cure - WSJ.com

PORTUGAL: Austerity Alone is Not the Perfect Cure - WSJ.com

It would seem as though several good points were raised vis-a-vis Portugal - i.e. with respect to raising the education level.

What was unsaid was the need to encourage entrepreneurship (social taxes in particular are too high) and to make the country more attractive to business.

All of this talk about austerity and raising taxes omits the rather clear evidence that high tax countries and states (the US is replete with examples plus those like the Democrats who want to ignore the implications of high taxes) will lose business to countries with a more business-friendly environment.

Obama may talk about a change in attitude to business but the facts would appear to be contradictory. There is no serious talk about cutting the government's share of GDP and either through borrowing or taxing business and entrepreneurs or investors, the Dems want to exact higher taxes to keep the government's share of GDP too high.

In the US the Republicans seem unable to deal with those in their party that are anti-immigrant and those with a religious agenda (America's own mullahs - see the Planned Parenthood issue in recent budget talks).

It would interesting to see talk in Portugal about a commission to encourage policy changes to support small business and investment into Portugal. Since this would take on too many vested interests - of course, it is omitted.

And perhaps, this is always the tug-of-war between those who feel entitled and those who are asked to pay for those entitlements. All of which is, of course, taking place without the presentation of plans in Portugal to have a real set of alternatives to the contents of the current article (i.e. austerity and no growth and hoping to get by with as few changes as possible).