Editorial: Greece’s Only Cure Is The Free Market

IBD Editorials ^ | June 28, 2011 | Staff

[Kaslin]

Debt Crises: What a sorry spectacle to watch Greeks rioting in the streets in reaction to austerity measures. As if tantrums can change reality. It's Exhibit A of how socialism infantilizes citizens. The only cure is free markets.

As Greece's legislature heads for a vote Wednesday to cut the size of its government by $40 billion in exchange for the last $17 billion of a $156 billion International Monetary Fund bailout on July 3, the world's television screens are flooded with images of young "indignantes" calling a riotous 48 hour-strike in Athens.

Steeped in socialism for decades, these Greeks see no connection between their economic circumstance and the expanded state that is at the root of their troubles.

The IMF bailout — and a new scheme to extend maturities of bonds to 30 years — will in fact keep the current system in place without providing new avenues for growth. That in turn will merely delay another crash if there's no move toward changing Greece's system.

Like any socialized society on the rocks, Greece needs to reestablish the link between effort and reward. That's the observation of one of Chile's great market reformers, Jose Pinera, who has said that's the key to ending unsustainable welfare states and enacting free market systems that can stand on their own.

With no such reforms in sight, and only an austerity program ahead, it's no surprise Greece's protesters blame bankers, foreigners, the IMF and of course Americans — some even accusing their president, George Papandreou, of being a U.S. embassy stooge.

[Brilliant]

I don’t think anything can “cure” this disease. You can only minimize the damage.

[dynachrome]

“As if tantrums can change reality.”

The parasite class will keep on believing it can.

[GeronL]

Greece will not do what needs to be done until its way too late. They want to fix what they have, not change it.

[RKBA Democrat]

I agree that the only cure for Greece’s problems, if there is one, is market based. However, what editorials like this love to ignore are the legitimate grievances of the opposition.

[Sicvee]

"Greece will not do what needs to be done until its way too late. They want to fix what they have, not change it."

Doesn't that describe our own situation?

[GeronL]

sure does

[Nuc 1.1]

Collapse is what the communists have in mind so they can take over. Same here.

[Blood of Tyrants]

If they have to stop relying on stealing pother people’s money, they are screwed, because stealing is all they know.

[RayChuang88]

Greece has three major problems plaguing its economy:

1. A public sector that has embezzled many billions of euros out of the Greek treasury.
2. Rampant income tax evasion.
3. Insufficient resources to produce their way out of economic doldrums.

In my humble opinion, the best solution now is the do a preplanned partial default of Greek finances and get Greece out of the Eurozone. Greece should have never joined the Eurozone in the first place.

[gogogodzilla]

Or you could parcel Greece out to a consortium of companies who are own money... and then have the businesses run the nation until the debt is repaid.

Kinda like the British East India company, only with a set terms.

The population of Greece would then all become private employees in a company that has a vested interest in making money. And if they didn’t like it, there would be the rest of the EU to move to.