will the same happen to california ?
It won’t convince those who aren’t convinced by the economic arguments against socialism. The problem will be blamed on “globalization” or “the IMF” or “US economic imperialism” or any other boogeyman.
Edited to add: I forgot tax evaders… these are the targets-apparent judging from news articles on Greece’s tax evasion “problem”.
Clayton -
No. Mises and Hayek’s calculation/coordination arguments prove that socialism cannot work.
Yes.
Relax, take your time.
Let everything of the 20th century collapse, and THEN people will talk about whether statism works.
The current fiscal crises in Europe and Japan is something they will never recover from again.
I would say it’s proof that if you’re going to do socialism, you need to have a printing press so you don’t have to ask for help when you go broke.
“I would say it’s proof that if you’re going to do socialism, you need to have a printing press so you don’t have to ask for help when you go broke.”
They can legislate the printing press in a flash. But why should they? In this way, the cost of inflation is dispersed among the entire EU while little Greece is (for now) continuing to get free rides.
Very true, they get a free ride of sorts. But they had to commit themselves to austerity plans in order to get funding. That’s not been politically popular.
Also, I don’t think Greece has the authority to give itself power to print money, I think the bigger countries are the only ones with that power, but I’m not sure, I’d have to check the laws.
EDIT: My cursory glance tells me that the ECB has the primary legal authority over the creation of banknotes in the eurozone.
Again, they could legislate their way out of the Euro and turn on their printing presses. Who gives a crap about laws? It’s all one big circus. What are the French and Germans going to do about it? attack them?
It’s in their interest to remain blood sucking leeches for as long as they can. Time horizon of political interests is no more then 2-3 years, tops! The only question is this: Will the Greek (and the rest of the West’s) population begin to realize that Interventionism and Socialism fails? I say they won’t. So we are all going down with the ship.
Really enjoyed that line.
Funny that the IMF was more or less founded by a Soviet agent.
The IMF is governed by socialist Post-Keynesian economists (Dominique Strauss-Kahn is its leader). But the socialists will tell you that that doesn’t really matter.