It Wasn’t A Hard Call, But, Suyts Nails It Again On Greece!

Well, if I can’t toot my own horn, who can?

So, the other day, I wrote about Greece’ tentative agreement to avoid total economic collapse.  When writing it, I had this to say ….

Well, it’s not a done deal.  As the article notes, this has to be approved by their parliament.  Expect riots, one way or the other.

Again, this wasn’t a hard call, but, still ……

Riot police fire tear gas at Greek demonstrators

Rioters hurled petrol bombs at police who responded with tear gas during an anti-austerity demonstration outside parliament Wednesday, as Greek lawmakers began debating contentious measures needed to start negotiations on a new bailout and avoid financial collapse.

Groups of youths among the more than 12,000 demonstrators smashed storefronts and set at least one vehicle alight during the hourlong clashes. It was the first significant violence since the left-wing Syriza government came to power in January promising to repeal bailout austerity. Police said at least 50 people were detained.

So, I can take a bow.  🙂 

There’s actually more to the article than just this.  A couple of things stand out to me.  For instance, the author’s obvious bias …….

The protest was timed to coincide with the start of debate on the bill, which includes consumer tax increases and pension reforms that will condemn Greeks to years of more economic hardship.

This is horrible biased reporting.  It’s from Fox News.  That sort of verbiage has no business being in a news reporter’s article.  It’s not news, it’s an opinion piece. 

Unfortunately, the author is probably 1/2 correct.  That fact that pension reforms need to be done in Greece is a no-brainer.  Greece simply doesn’t have the money to pay the pensions they’ve promised.  Without the reforms (and they probably will never happen), that means people from other nations will pay for the early retirement of the Greeks while the people paying must continue to work.  Under no circumstances should that ever be allowed to happen, but, it will happen. 

That said,  there can be nothing more idiotic than forcing a consumer tax increase on the Greeks in an effort to get their economy back to moving.  It’s horribly self-defeating.  Governments obtain their money from the economy the people create.  Increasing the price of goods and services constrains the people’s ability to create wealth.  It is wealth creation which funds the government.  The lower the wealth creation, the lower the revenues for the government.  It’s that simple. 

The problem in Greece was never that the people weren’t taxed enough, so why is this a “solution” to their problems?

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7 Responses to It Wasn’t A Hard Call, But, Suyts Nails It Again On Greece!

  1. tomwys1 says:

    The Greeks were sufficiently taxed, and tax increases will not help.

    Instead it is clear that they SPENT too much, and enterprising media reporters need to “follow the money” to see who EXACTLY benefited from that spending. Look under rocks like public projects, infrastructure improvements, and find out who the major beneficiaries were, and their political connections.

    We have Solyndra here, and many more. Might not be a bad idea to ask some of those benefitting disproportionately for refunds!!!

  2. Lars P. says:

    Which is why Schaeuble, the German FinMin was right all the time:
    “Temporary Greek exit from euro region may be “the better way” because it would allow haircut, provided Greece agrees to such a step”
    Grexit would allow debt forgiveness & excess state payments, as these can be balanced with depreciation. Once the financial stability is achieved then they can retry euro if they want.
    Of course Grexit would mean that all imports become suddenly more expensive what all those mostly state employees would not like to see happening, but you can’t have your cake and eat your cake at the same time.

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