Greece is in dire straits. The government is bankrupt and is on a short lifeline from the mercy of the EU. The socialists mindset that a nation can give out more than it takes in while consuming more than it produces is crashing into rude reality. It’s this reality that leftists in Greece are objecting to.
Parliament backed drastic cuts in wages, pensions and jobs on Sunday as the price of a 130-billion-euro ($172 billion) bailout by the European Union and International Monetary Fund, as running battles between police and rioters outside parliament drove home a sense of deepening crisis.The EU welcomed the vote, but told Greece it had more to do to secure the funds and avoid a disorderly default next month that would have “devastating consequences.”
Euro zone finance ministers meet on Wednesday, and the fragile ruling coalition of Prime Minister Lucas Papademos has until then to say how 325 million euros of the 3.3 billion euros in budget savings will be achieved.
The reaction from the public was “the worst violence in years.”
Papademos had warned of a “social explosion” if lawmakers rejected the deal and Greece defaulted. But the unrest outside, and a rebellion by 43 parliamentarians of the ruling coalition, suggested Athens might already be on the brink.”The people yesterday sent a message: Enough is enough! They can’t take it anymore,” said Ilias Iliopoulos, general secretary of public sector union ADEDY.
Firefighters on Monday doused the smoldering remains of cinemas, shops and banks set ablaze in the capital during the worst violence in years.
The riots spread to Greece’s second city of Thessaloniki, towns across the country and the islands of Crete and Corfu.
Critics on Monday said more austerity would only condemn the economy to an ever-deepening downward spiral, but Greek political leaders have offered few alternatives.
The austerity measures and a drastic cut in government spending is precisely what is needed at this time. Crazy enough, European economists say that the measures parliament signed off on, wasn’t drastic enough. That’s what has the left in an uproar. What will they do without their subsidies?
The cuts agreed upon will not cause a downward spiral to the economy. To the contrary, it will require more people to work, and lift the burden imposed on employers so they can hire more workers. With more revenue coming in, more production from the economy, and less from the government to deal out to a complacent populace; the quicker the government will be able to clear up its finances. Moreover, the better off the populace will be when they realize they will actually be able to produce and consume in more abundance at much lower prices than before.
Leftists are adult-children and like children they are prone to tantrums. So as adults typically do, they must do what’s best for the children and explain to them the benefits of adopting such behavior.
Related articles
- Greece attempts to ward off social explosion (business.financialpost.com)
- Stunning Photos Of The Disaster Zone In Greece (businessinsider.com)
- (ADIEU) Violent protests in Athens as Greek parliament approves latest austerity package #eurogeddon (dreadnoughtuk.wordpress.com)
- Greece reaches deal with creditors to secure bailout (oregonlive.com)
Of course they are adult children. Look at the tantrums when you take away their lollipops!
–Brian
Lol@Brian!
‘With more revenue coming in, more production from the economy, and less from the government to deal out to a complacent populace; the quicker the government will be able to clear up its finances.’
How exactly will this happen? Greece can’t set its own interest rates, these are set by the European Central Bank (ECB), as due to its participation in the Euro (single currency) it can’t devalue to make itself more competitive internationally. In addition the Ratings Agencies have given Greece junk status so it can’t borrow to fund investment in new sectors of the economy…. By reducing wages, cutting pensions and making people redundant demand in the domestic economy will shrink further, reducing the tax take and decreasing government funds over the longer term. I’m curious as to where exactly the increases in revenues and extra productivity emerge from?!