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Old May 5 2013, 03:58 PM   #10
stj
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Re: Greece's Underlying Policy Problem.

Unless I'm completely confused (which is possible, given the flurry of dubious ideas,) the decline of tourism revenues in Greece cannot be attributed to low Greek productivity. That single factor must be attributed to an international downturn in economic activity. And yes, so far as I know, it is a major one for the Greek economy.

Capital markets are working quite well for those who possess capital. They are not functioning so well for the mass of humanity, but then, in a capitalist system, people are merely a factor of production. They only exist to service the economy, the economy does not exist to service them. Insisting on a capital market in the end means insisting on this state of affairs.

Another dubious idea is the notion that the Greek economy is over-regulated. If the Greek government (and the people who supposedly create it) cannot collect taxes or force its personnel to carry out its policies uniformly without indulging in personal benefit, in what sense is it even honest to claim the Greek economy is over-regulated?

Needing three government agencies' approval to connect a phone suggests that the government bureaucracy needs to be simplified, of course. But historically bureaucracies acquire a seeming independence from the directing higher elements of goverment, the official leading part that is supposed to determine general policy, by acquiring a reciprocal relationship with a special interest. This is particularly true in bourgeois democratic governments, where the owners are particularly anxious that elections do not actually change anything.

Lastly, of course, the notion that lowering the minimum wage will cure a depression is folly motivated by hatred of workers, whether personally felt or imbibed with ideology. Firing most of the civil service of course is pretty much the same. This last incidentally gives the lie to the sincerity of the belief that "over-regulation" is a genuine problem. If you really believed that, you don't need to fire any government workers, thereby aggravating a depression by lowering consumer demand. You need only direct your workers to sit at home, collecting their paychecks.

Everyone of course knows that this would be insane, because they know that over-regulation is really the problem they claim. Therefore bureucrats sitting at home maintaing consume demand would not benefit the economy to any significant degree. The whole idea is just another fraud. It's just a disguised way of lowering wages.
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