Friday, July 10, 2015

Austerity Isn't The Only Reason Why Greece Is In Shambles


In progressive, Democratic circles all across America (and throughout the West), the Greek Referendum vote has been championed as not only a major victory for the working class, but also a global indictment against austerity.

By rejecting another round of harmful budget cuts as part of a new bailout package, Greece loudly and unequivocally said "enough" to the elitist overlords who are bleeding the common man dry.

Bernie Sanders celebrated the decision, saying "I applaud the people of Greece for saying 'no' to more austerity... In a world of massive wealth and income inequality Europe must support Greece's efforts to build an economy which creates more jobs and income, not more unemployment and suffering."

Paul Krugman also cheered the "No" vote: "The truth is that Europe's self styled technocrats are like medieval doctors who insisted on bleeding their patients- and when their treatment made the patient sicker, demanded even more bleeding."

In an open letter published in The Nation, world renowned economist Thomas Piketty echoed Krugman's thoughts: "The medicine prescribed by the German Finance Ministry and Brussels has bled the patient, not cured the disease."

"The Greeks have complied with much of German Chancellor Angela Merkel's call for austerity- cut salaries, cut government spending, slashed pensions, privatized and deregulated, and raised taxes. But in recent years the series of so-called adjustment programs inflicted on the likes of Greece has served only to make a Great Depression the likes of which have been unseen in Europe since 1929-1933."

Throughout the process, Merkel has emerged as a de-facto villain in the eyes of the left-leaning media: a German version of Paul Ryan on steroids. She has been painted as unruly, even bloodthirsty, holding Greece hostage, demanding more and more cuts that hurt the poor and the working class in exchange for debt relief.

However, despite the fact that austerity has plunged Greece deeper into financial meltdown, it isn't the only reason why the financial crisis exists.

The Greeks must shoulder part of the blame as well.


NO COUNTRY FOR TAXED MEN

In a fascinating piece for Vanity Fair (published in 2010), critically acclaimed author Michael Lewis travels to Athens to speak to Greek monks, tax collectors and government officials about the country's financial system.

His findings are mind-blowing.

Corruption runs rampant throughout Greece. The entire country runs on bribes. Everyone lies about their income. No one pays taxes. All the books are cooked. Money is laundered through massive, under-the-table real estate deals. No records are ever kept. Everything is "handwritten and hard to decipher."

"The Greek people never learned to pay their taxes. And they never did because no one is punished. It's a cavalier offense- like a gentlemen not opening a door for a lady."

This massive, widespread and systematic lying and cheating has crippled not just the Greek economy but the Greek culture as well. Simply put, civic ties are crumbling because Greeks don't trust each other. It's become an "every man for himself" society.

"No success of any kind is regarded without suspicion. Everyone is pretty sure everyone is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating and stealing."

Sure, the austerity measures pushed by Merkel and the rest of the Eurozone have poured gasoline on the Greek fire, but the initial spark wasn't lit in a vacuum. It was lit within.

As Lewis explains, "[Greece] behaves as a collection of atomized particles, each of which has grown accustomed to pursuing its own interest at the expense of the common good."

A society that functions this way cannot succeed. Even the best financial system in the world is doomed to fail if the people running it are only looking out for themselves.


CHANGING FROM WITHIN

Greece is the birthplace of democracy. To save their financial system and their soul, the Greeks must return to their democratic roots.

Voting against austerity was the first step on this journey toward salvation. More harmful cuts will only plunge Greece further into the abyss. A new course must be charted. The current one just isn't working.

But democracy is more than just voting. You can't just cast a ballot every few years and then exit the democratic process entirely. Democracy comes with responsibilities. It requires citizenship.

To turn the country around, the Greek culture must change. Corruption must be rooted out. No more bribes. No more cheating your taxes. No more fake real estate deals. No more cooking the books.

In the end, austerity is only one side of the Greek crisis coin.

To save their country, their economy and their way of life, Greeks must also change within.

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