Dear Friends,
It seems to me that when governments get into predicaments like Greece they are acting very much like alcoholics. They display the same behaviors and attitudes. The descent path is even similar. It’s funny how macro economic phenomenon can mimic individual human behaviors. I suppose this is a synchronicity that arises from the fact that macro economics is at heart a complex mechanism and human behavior is also a complex mechanism. Perhaps if the analogy holds up we can take lessons from the arena of human behavior modification and apply it to the Greek situation.
The “alcohol” that a government gets addicted to is government spending. There are several reasons spending gets out of control in modern governments most of them involve some aspect of welfare state capitalism. The Greek situation is no different. The Greek government Elite have a decided anti capitalist bent and it is born out by the fact that 40% of the economy of Greece is government controlled. This profound level of inefficiency, coupled with insane government benefits for the indigent, wed to form a perfect union of uncontrollable government spending and shrinking GDP.
There is an entitled mentality that is epidemic in Greece. I figure the Greeks have decided to follow the example of Thrasymachus. This is again born out by the fact that there are demonstrations in Greece at any hint of a diminishment of government largess. (By the way, I would never own a McDonald’s franchise in any country other than the US, apparently rioters hate cheap food served quickly). I have no idea what logical point the general strikers could be making…
Maybe; lets have a total and catastrophic collapse of our economy? Hunger and starvation for everyone? Crash smash, bus crush, we want to feel jack boots on us? Where do the rioters believe the money is going to come from? Or do they think they are entitled to the labor of Germans?
I would say at this point. Greece is the guy who was keeping it together at work. but now he is screwing up badly. Late for work, drunk, and is a drag on moral, he is dancing with termination. Before, everyone loved him, always drunk and happy. Giving away money and buying lunch like there was no tomorrow. And now there really is no tomorrow unless he gets sober. But he is MAD. Mad that anyone would have a problem with his drinking. Even as he goes to the bathroom and pulls a flask from the toilet tank. “What is wrong with them!” Thinks the alcoholic who’s problem has moved up to the next level.
Soon he is out of work and soon Greece will be bankrupt. Even as the people riot in the streets and the government “invests” in “infrastructure.” As I have written before, even if a benevolent alien space people landed on Earth and gave he government of Greece the equivalent of their total debt today, every year for ever, adjusted for inflation, Greece would be in default eventually, and I bet sooner rather than later. Then there would be rioting in the streets over the greediness of those Aliens!!!!
What would a loving family do for a person who has such a powerful drinking problem? They would intervene. On the surface that is what the European Union seems to be doing. But, is giving a drunk keg in his basement… really helping? I don’t think so and I bet most other people don’t either. But as the problem grows bigger and bigger and more and more money is thrown at he problem, when the eventual fall comes, it will cross State lines. Growing in magnitude every time Greece is bailed out.
So here we are, Greece is reeking of liquor and getting bailed out again. They promise not to stop at the bar on the way home… We’ll see. The term kicking the can down the road is used to the point of becoming trite. I think a better term would be enabling.
Unfortunately Greece is not the only drunk at work…
