This blog is dedicated to my friend, P., who lives in Germany, and whose manner became noticeably chilly after the so-called help to Greece began. Here, I'll write all those things I couldn't tell her over the phone.

Πέμπτη 6 Σεπτεμβρίου 2012

Greece: a cow

They tell us that Greece has to pay off her debts. Fine. They tell us the Government needs to have more money to pay those debts. So far so good.
Then they order us to cut down on pensions and salaries, fire of public servants and the like.
But, with 1 in four Greeks without a job and the other three making less money than before, the taxes paid to the state grow less, right?
Not only that, but those people have less to spend, so they buy less, and the state misses on VAT too (Greeks pay a VAt of 23% on everything they buy).
As people buy less, lots of shops and other businesses go out of business. That's even less taxes for the state, isn't it?
Now, with the state getting less revenue and the economy going down instead of up, how on earth are we going to pay our debt?
Do these smart economists even want their money back?
If they do, then how can they impose such counter-productive measures?

It seems to me that Greece is like a milk cow: the people who bought it (i.e. own our debt) want it to make milk so they can make money from their investment.
But their recipe for making the cow produce more milk is to cut its food by half and its water by one third.
Tell me, is this a recipe for getting one's money back or for a disaster?

And how can they not see it?

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