I hear you can’t pay your debts again. I am a little sorry but you brought it on yourselves. A few reminders.
Your country is a democracy. The way you got into this pickle is through the stupid, self-indulgent policies of those you elected. You did it again in your last election by bringing to power a bragging leftist party in the old Stalinist mold. What did you think they would do: Frighten the European Union, The International Monetary Fund (Number one stockholder the US), Germany, the world, into submission, into erasing your debt? Think!
The reason Germany is your principal creditor is that one of your previous governments begged Germany for help and it agreed to help. The Germans did not cram loan after loan down your throat; you asked. The big sillies thought you would be honorable and pay up as agreed. Do you care about your future reputation, your honor, your children’s future ability to walk in the world with their heads up? Here is a basic rule of politeness which is also a moral rule: When somebody gives you a hand, you don’t bite it viciously.
There are several reasons your government can’t pay its debts. One reason is that your political class is corrupt trough and through. Another is that you are reluctant to pay taxes the way normal people do in the European Union. Too many Greeks want to work and pretend-work for the government instead of doing real work. And your government still owns stuff no government anywhere should ever own because governments always make a mess of running them, resorts, among others.
Another reason why your government can’t pay its bills is that your country is genuinely poor for a European country. There too, you have a lot of explaining to do. For one thing, you have been living above your means for a long time, pretending you were more or less like Danes, or Germans. Well, the truth is that you are not, not even close; Danes and Germans are very productive; you are not. So, you should not have ever expected to work short weeks and to take long summer vacations, like Danes and Germans. Such privileges do not come automatically with membership in the Union, you know. You should look over the border on the despised neighbors, the Turks, instead. They don’t pretend to themselves that they are already rich; they go to work early and they close their shops late. Many of them work six days a weeks. Over the past ten years, the growth rates of their economy has left yours in the dust. Coincidence?
And you only make yourself even more scorned with your treatment of others. The real horrors that Nazi Germany inflicted on Greece more than 70 years ago are not much of an excuse anymore. A previous government of yours, an elected government, accepted reparations a long time ago. And, by the way, in 1945, Germany was much more devastated than Greece, and still in 1948. See where the Germans are now, and where you are? Any comment?
And do you ever wonder why the Estonians, in the stultifying Soviet prison for fitly years, never ask for new loans to pay back older loans? And how long anyway did you expect German workers to work until age 69 so your public servants could continue to retire at 63? Are you out of your minds?
One last thing: You are not exactly Classical Greece. Stop wrapping yourselves in Aristotle’s toga. Really study Socrates. He chose to die than cheat even a little. Neither he nor Aristotle was a whiner. That’s why they are still remembered and honored.
In the end, I wish you well. Everyone can unlearn bad habits and learn basic rationality, even late in life. I hope you soon leave that club where you don’t belong. I hope further that you can make your way back. Begin by getting up at 6 every morning. Also, learn the obvious: socialism does not work well for rich countries; it’s miserable for poor countries.
Part Two: Taxing the Rich.
I argue in Part One of this essay that the stimulus package could not possibly stimulate the economy the way a stimulus package is supposed to do. That is, the present stimulus package cannot shorten or lessen the current recession by stemming the growth of unemployment and by jump-starting the national economy, the way Keynesian economics has it. I suggested there had to be another agenda for this massive spending of public money.
Recessions – two consecutive quarters when the national economy contracts instead of expanding – are common under capitalism, in market economies. They wane, whether or not anyone does anything about them. This fact makes if difficult to assign credit to government measures designed to lessen or shorten recessions when economic indicators do look good. Economic indicators don’t look good right now, although some of the press is announcing the beginning of the beginning of the end of the recession.
At any rate, the recession will end eventually. That is, economic growth will resume. I would bet on it but I don’t know when. When growth resumes, we will be left with the second economic crisis facing us. That second crisis is less routine, more extraordinary, and more worrisome than the first crisis, the recession itself. It’s massive public indebtedness. I have to go into the reasons why the Federal Government is even able to incur massive debt. Continue reading