Greece: A Socialist Experiment

The people of Greece, desperate for a change, just elected a far left-wing government.  It was not a majority vote, but the left-wing party won a plurality and is now effectively in control.

Of course, there will probably not be any change, or it will be change for the worse.  It probably seems that things can’t get any worse to the people living there, but they will soon find out that that is not the case.

H. L. Mencken said that democracy is the theory that the common people know what they want, and deserve to get it good and hard.  It is a funny quote, but also sad at the same time.

I really don’t think most of the people there deserve what they are about to get.  They are getting what they asked for, but I can’t really wish poverty and misery on  most people.  To be sure, there are certainly a few people there that truly do deserve what is coming.

Greece is a welfare state.  They are running in to the problem that Margaret Thatcher once identified with socialism.  The problem with socialism is that you eventually run out of other people’s money.

Greece is out of money.  To be more precise, they are out of wealth, or close to it.  For anyone left in Greece with any significant amount of wealth, I would run for the hills.

I think a far left-wing socialist government is exactly what Greece needs right now.  The people there probably won’t learn their lesson, but at least maybe some observers will learn a lesson.  While the economy continues to descend into chaos, it is better to be blamed on a socialist government.  I am getting tired of hearing that “austerity” is to blame for the crisis.  There has been anything but austerity in Greece, unless you accept the crazy definition that austerity is higher taxes.

I believe it is inevitable that Greece will leave the European Union.  I have thought this for a while, but things always seem to take time to play out.  The elites seem to find a way to kick the can one more time.

Greece should default on all of its debt.  It is actually one of the best things that can happen to the Greek people.  It isn’t so much because they won’t be burdened with the interest payments, although that will help.  It will be because, hopefully, nobody will lend money to the Greek government any longer.

This would be a good thing.  The talking heads say it as if it is a bad thing.  If the government can’t borrow, then it can only spend what it taxes or prints (inflates).  It is better to have two options than three.

If Greece leaves the EU, it will get its own central bank going again.  They will probably try to inflate.  Hyperinflation there would be a real possibility.

Maybe they will eventually straighten out their problems, but for now, it is a complete mess.  It is better to be blamed on a socialist government.