Current revenues: $119 billion
Current expenditures: $128 billion
Debt: almost $500 billion
https://www.cia.gov/library/publications/resources/the-world-factbook/geos/gr.html
We’re talking pretty big numbers here. With Greece’s $25,000 per capita income, I don’t see why we’d prioritize helping Greece over helping poorer nations that need it more.
OK, do you have any specific examples of inefficient Greek regulations? Or is it just a matter of faith that because they’re in trouble, by definition they must have inefficient regulations?
Heritage ranks Greece 130th in economic freedom.
Count me as confused. All the German and french bankers act so surprised-they KNEW that Greece had no way to repay what they borrowed. Greece has a history of defaulting, going back years. the country is mostly tourism, with a little olive oil and low grade wine thrown in. Bankers are supposed to do “due diligence” before floating loans-what part of this wasn’t understood?
Shut Greece down and have a going out of business sale. The only was is to start over-without the hideous Greek government bureaucracy.
That site is a real hoot! Looking at the US page:
Looks to me like a view of the world through the lens of the Kochs.
Journalists often don’t have an economics background, and economists often don’t have a humanities background.
There is some advantage being at the intersection.
I’m having trouble myself understanding through the breathless outrage what exactly it is that he had in mind, but it looks like he was laying contingency plans for euro-withdrawal and the foundation of a new drachma payments system.
Not exactly the same thing, if that’s the case. I think they should set up an alternative system even if they stay on the euro. It would ease pressure today, while also making any future transition easier. He was wargaming the breakdown of eurogroup negotiations. I take it that his own preparations, while prudent in general outline, might have run afoul of the law. Computer h4x0rz or something. I mean, in his place I know I definitely would’ve had some sort of tentative plan in place for Grexit, but not sure he was going about it in the proper way. Maybe. I don’t trust the political remonstrations and recriminations that fly back and forth so I only want to speak generally myself. 1) Backup plan: good. 2) Blatantly breaking law, if that’s what happened: maybe not so good.
Can’t remember where I read it. Might be daffy but it stuck with me.
Point being, they need to think around the problem. They need some intellectual flexibility. They need some sensible thinking. Unfortunately, this has been in even shorter supply than usual. Something about the nature of this crisis brings out the crazies, not just in politicians but generally. We in this thread need not look far for more examples.
Of economics and humanities, I mean. Not journalism.
Some more information here:
http://www.theguardian.com/business/2013/nov/27/oecd-takes-aim-at-greek-bureaucracy-growth
You seem to have your own definition of conservative versus liberal, to me the distinction is small government versus large government.
Stay out of bad currencies and don’t practice bad monetary policies are non-partisan lessons from the Greek meltdown since they do not involve the size or scope of government. However, Greece is not the only country to be in the Euro and be hurt by the Euro, but it is the only country that has had its economy meltdown because of the Euro.
The reason for that is that the Greek government borrowed and spent too much money. All historical events have a myriad of causes but the central fact of this crisis is that the Greek government borrowed and spent more than it could pay back. Thus the central lesson is don’t do that. That is a conservative lesson.
No it isn’t. That would be a lesson in prudent fiscal behaviour available to large or small governments.
There may be a few tweaks needed but a few anecdotes from disgruntled businessmen doesn’t a crisis make. Get more aggressive in tax collection and create a regulation czar/ombudsman to recommend reforms.
In 2013 the OECD did a report on the over regulation of the Greek economy and recommended the abolishment of dozens of regulations. Such as the restriction of sale prices to certain time of the year, the maximum distance a race track can be from an airport, that athletic training facilities aimed at tourists must be open all year,etc. PDF
Bob, if there’s a liberal site that measures economic freedom, then I’d love to see it. Until then, all we have is conservative sources. Why liberals don’t care about this kind of stuff I don’t know, because bad regulatory policy should not be a partisan issue.
Nothing wrong with regulatory policy, unless it limits the creative energies of investment bankers to create new and exciting investment vehicles. Lizzy Warren wants them to return to the days of bankers being all boring and secure, but how then could they afford to support the lifestyles of their upper management, the style to which they are accustomed? Not to mention a swarm of bright young MBA’s, eager to slice a very good living out of the small investor.
The lesson is - conservative, liberal, left, right, inside out - don’t get into bed with the Germans.
Deal or No Deal?
New article by Frances Coppola in Forbes:
The Wheels Are Already Coming Off The Greek Deal
Seems that there is something of a power struggle going on between the Eurogroup (or at least the German finance minister and his supporters) and the European Commission. President Juncker is hugely relieved that there is a deal: Wolfgang Schaueble is still pushing for Grexit, by fair means or foul. I’m not sure which one I would back to win.
Also, according to Peter Siegel at FT, there’s a funding shortfall of 24bn Euros, so they can’t proceed without the IMF. Will the IMF cave and bend the rules again?
Political partisans, place your bets.