Thursday, June 21, 2012

Greek Madness (Or how to keep your economy in crash mode)

Greek coalition parties have agreed to seek extension to unemployment benefits and limit public sector lay-offs.

Three things to note:

1. Greece has no money to pay for this.

2. If you pay people not to work by extending unemployment benefits, many will not work.

3. The public sector is the unproductive sector of the economy. The entire sector should have a chainsaw put to it, to free up money for the productive private sector.

1 comment:

  1. Greece's decade of booming government spending has meant that vast swathes of the electorate have been captured as political slaves dependent, one way or another, upon the status quo government gravy train rolling on.

    In a "tragedy of the commons" environment, it always eventually comes down to the tolerance of producers versus the greed of extractors. It's true for the democratic will of Greece and the plutocratic will of the EU itself.

    “The state is that great fiction by which everyone tries to live at the expense of everyone else.” - Bastiat