The social welfare and security systems were intended to be catch-nets for those who fell. It softened the fall and gave enough support to get up again. It gave assistance to those unable to work and reduced their burden on others. In principle it is a brilliant to support a growing, vibrant economy whilst enabling industry to get on with expanding.
When those who don’t wish to work, find it difficult to move out their comfort zones or just too selfish and lazy to go out and make a difference finding it easy to live off the system, they create an increasing burden on the system and tax payer.
That becomes a nightmare as these indolent have discovered they can vote themselves support for life.
Looking at the world crisis, banks and capitalists have been blamed. The reality is that there was a accumulation of politically driven aspects including banking rules, subprime CAR and other issues that were background noise until the systems started to fold.
The Situation in Greece has been a mind-fuck of free rides and easy living for most Greeks. Over geared by a socialist govt they were on a knife’s edge for years, but with the crisis fell off. Germany basically bailed them out first time, and I admire Merkle for her work and putting her neck on the line. The reality is that Greece abused the Euro and fucked the cat so their net was full, splitting and their economy was tipping.
Germany placed provisos. The Greek govt has been trying to meet goals but their people want none of it. Like spoilt children giving up what was easy and pleasant they are having hissy fits.
Not surprising that Greek targets are not being met. Their tourism is stuffed by the strikes and will take ages to recover. Since they don’t have much else that is a bugger?
They did cast round to other EU nations and UK said no thank you we are bailing out Ireland and our own people. However now Merkle came through with parliament support we see Greece has failed to match commitments so we sit and wait. Not surprisingly Lloyds has been pulling out of European banks so what now?
The Euro was a fair concept, but had the weakness of lack of unity on fiscal commitments. So unless they fix this it is doomed. So lacking Greek commitment they are going to have to let Greece fail and fail hard.
If Germany, with Europe had earlier extended their catch nets to include Greece, or for that matter Italy, then like a fishing boat pulling up their net and finding the net too full they have to cut loose the extra weight or the European Economy will capsize.
We are witnessing the twisting and turning of European Economies trying to shift a Super tanker through an ice flow. We look back on all those lost opportunities to effect changes in course over the last couple of decades.
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