A Call for a Big Bang for Greece

Steve Hanke has an op-ed in today's WSJ where he calls for a three point Big Bang solution to the Greek crisis. This would work, but it wouldn't protect the elite banks pulling the strings behind the scenes, so it is unlikely to be implemented.

Here's Hanke's three points (to be implemented simultaneously)

1. Restructure the debt (That is the government needs to go bankrupt)

2. Cut government spending

3. Cut taxes (especially labor taxes).

Hanke does call for a bit of monkeying around with the VAT, which I would just throw overboard. But in realeconomik terms Hanke's proposal is a winner, compared to all other proposals out there.