Tag Archives: economy

Longterm Social Crisis

This week several mainstream headlines quoted “experts” who pointed to signs of economic recovery on the horizon.  I think they were referring to Europe, but if you search the news, you’ll find other experts pointing out signs of the same for Japan and the United States. Of course after experts say such things they add the caveat: but there is still a lot of uncertainty.

As I ride through the streets of Amsterdam and my neighborhood, the young yuppie mecca known as the Oud West, I see “for sale” signs everywhere.  Most of those signs have been hanging there for most of this year.  As I drive the Red August around the canals of Amsterdam, I see more “for sale” signs on house boats then I’ve ever seen before as well.  Some disappear in a few weeks, some linger and have become part of the scenery.

Riding home from frisbee practice the other night I was chatting with a longtime friend who works as a freelance ICT person for the past few years.  Talking about his business and how things have been, he pointed out that in the past few years he was always swamped with work, in many cases having to turn down jobs because he was too busy.  In sharp contrast he described this year as one with hardly any work, for the first time in his freelance career he has had to approach businesses and potential customers in an attempt to convince them they could use his services.

Are so many people unemployed in the Netherlands? I suppose not as many as I’ve noticed back in Portugal or the United States.  But what about all these freelancers and those of us who are employed part-time for the past few years, how do we factor in to the statistics in these troubled times. Beyond that, do any of us realize how much worse it can get?

Economic experts and government representatives can point to industrial output numbers and so-called investor confidence surveys to justify holding a “the economy is going to get better” press conference.  But a walk down the street and a talk with your neighbors tells another story.  Seems like everyone, from the big corporations who needed bail outs, to the banks who traded in fake money, to we the freelancers/consumers, thinks that we can have economic recovery but just doing things how we always did, not need to learn any lessons from the past. Looming social crisis? 25 million unemployed by next year? We don’t want to think about it.

Hungarian Rescue Plan

I must admit I didn’t know Hungary was until recently considered an economic powerhouse of Eastern Europe. My limited time there last week left me with neither the impression that it was an extremely well off country, nor the opposite.? At the same time I did notice plenty of construction projects seemingly left unfinished, and infrastructure (like public transport) that looked like it hadn’t received new investment since the 1980’s.

There was talk among Hungarians and expats that I met about the terrible economy, with many expressing that it hadn’t been that bad in a long time.? But even then it wasn’t obvious to me how bad it really was.

Today I read about the rise and fall of the Hungarian economy, and immediately following that, the plan to pump money into that economy.? Among the reasons for its fall? A government burning through alot of money and taking on alot of debt.? One of the lowest employment rates in Europe.

With the IMF’s 25.1 billion dollar bailout of the Hungarian economy, it isn’t clear – as is so often true with bailouts, if this will turn things around.? The term “tighten their belts” is thrown around alot.? Which begs the question, at a time when so many people are in need of help, where can the government afford to make deep cuts without doing harm to an already wounded citizenry.? Then again, I noticed Hungarians are tough, maybe tightening of the belt is precisely something they would be up for.

Economies and Plants

During my lunch break on Myesonday I made my way over to a plant store near Olympic Stadium, here in Amsterdam.  Usually working past the time places stay open, I thought it best to buy my spring plants during my work day, plus I’d seen this shop several times since starting my new job, seemed like a good place.

I choose my spring flowers and bring them inside to pay the extremely tall, grey haired gentleman with the glasses. As I pay him I look down at the pansies and ask (in Dutch), I’m from the New York area, where normally pansies don’t make it once the weather gets warm; I’ve always wondered, does that work the same way here, or do they last longer since its slightly cooler weather here?

The man looks down at the little plants and begins to explain using alot of hand motions: We’re on a very similar level compared to New York, on the globe relatively speaking.  So the same, technically, applies, you only get flowers for a few months and its over.

From there the man seemed to jump into a larger conversation:

It is all related. Plants in the US, plants in the Netherlands. Mortgage crisis in the US, mortgage crisis here.  Whatever happens, his tone gets louder, in the US, we will always feel the effects here. Then he looks at the ground, although, I think we’re better equipped to survive the crisis, as people don’t use credit to but things the way they do over there. But mortgages, oh the mortgages, these prices in this country have been out of control for too long, it had to stop. Again he returned to his earlier statement, I think we can survive it, we are a small country and people can be very smart about not borrowing and not getting into debt schemes, I hope we survive it with minimal damage.  But again, it is all relative. Pansies, economic crisis….. US, Netherlands.

Have a nice day and good luck with the planting, he waved to me as I stepped out of the shop.

Vamos As Compras

Portuguese people be shoppin.’

You cannot stop a Portuguese person from shopping.

I didn’t bother trying. I joined them, cause grandma and grandpa deserve a little something nice from the impoverished travelling vlogger of a grandson.

But it really me wonder that classic question: How do they afford it?

I’m sure you’ve heard about people in debt and still shopping in places like the US. But someone should check the stats, Portugal has by far less money yet there are shopping malls and insane shoppers everywhere.

Spent the early afternoon with Mr. Miguel of the vlogspark project, whom I became fast-friends with at VlogEurope a few weeks ago. We talked about people’s consuming habits here, and how they aren’t very into shopping locally. Instead you find the big megastores full of people while the beautiful little mom and pop stores wait nearly empty in the heart of the city.

My hope, as I told Miguel over lunch at this fancy-fun alternative café/clothing store, is that this is a phase, and soon people will long for shopping in a local place again, where shop owners give you that wonderful personal and caring touch. Luckily for me, I got to experience that joy today, as random old people walked me around their shops, carefully helping me choose and taking their time to carefully prepare every detail of my purchases.