If you haven’t been living under a rock, you might know that Greece is in the middle of a pretty serious debt crisis. In fact, it’s worse than the sub-prime mortgage crisis that has wracked the United States economy in recent years. But the inventors of the gyro saw it coming. The Greek government borrowed enormous amounts of money to pay to its citizens in the hopes that a suddenly-wealthier populace would create economic growth. No one is quite sure how the officials thought that would work. It was smooth sailing for awhile – little tax collection, high government salaries, and lots of new toys.
But finally, the Greek debt is coming due. But the Greek people don’t want to pay. They see their income as fairly earned, and unfairly demanded by the rest of the European powers. The Germans, who financed a large portion of the loans, are especially anxious about this angst over repayment.
<—- I don’t think this is the best way to get the Germans to excuse the loans. But maybe we are just naive over here. Many writers, including Michael Lewis, the famed writer of “The Big Short” and “Boomerang,” believe that Greeks will need to fundamentally change their culture in order to be considered worthy borrowers again. But how can that be done? How can a government tell its people, “Sorry, the previous government was irresponsible and you all need to pay for it”? This situation just creates political suicide over and over, and there is no palatable fix in sight for Greece.
So what can be done? In recent years, the Greek government was the only viable employer in the country. Salaries in the public sector paid on average three times that of private employment. This could not possibly be sustained, because hardly any government turns a profit. The solution here is to entice foreign companies to employ Greeks. This may seem like an odd solution to offer considering the usual solution this blog offers is to curb the freedoms of corporations.
But in this case, Corporacracy was missing a vital element: the private sector. The public sector cannot exist by itself, as proven by the USSR. It needs a counterpart to create the revenues and employ the people. It needs a partner that is driven by profit and progress rather than equality and social wellness. Corporacracy is a harmony between business and government that is often abused, but is always needed.