Originally Posted by dlymn
I don't think that many people would look at that graph and then condemn the current government. Your graph actually shows that GDP was in growth for some of the time. I think that the real culprit here is the fact that the government has been so worried by the pressure placed on them, by trying to negotiate an almost impossible situation and by a pack of right wing conservatives who will take any opportunity to damn the left that they are finding it difficult to foster growth. I'm surprised this government has survived as well as they did. For the last seven years the government lied about their economic situation, borrowed well above their capacity to repay, and when their corrupt behaviour was revealed, were kicked out of power. The electorate knows that they voted out a bad government and that anyone who took the reins would have a herculean task to recover.
Tsipras hasn't had time to rebuild
the economy; some people are threatened by socialism and will do anything they can to destroy any socialist movement.
Why, because a conservative always ask "what's in it fo me?" and socialists ask " what's in it for all of us" This attacks the self centred, greedy, money hungry people who would stand and spit on those less fortunate lying in the gutter
when a country is on the verge of bankruptcy right or left it makes no much difference. Competence in dealing with Economy issues, seriousness and the balls to take the necessary unpopular needed measures is what counts.
When a country wastes far more than what produces and nobody is willing to give away more money for them to continue to live above their means on borrowed money there are only one way and that is to spend less money.
A typically European state like Greece expends most of his money on public workers pay, wealth system, pensions, public education and welfare.All this accounts probably 95% of public spending and there is where cuts have to be made. A smaller state is an absolute necessity.
That or increases substantially taxes
to pay that fat state but that does not work anymore when taxes
have been increasing for years.People has just no more money to pay higher taxes and that only leads to unemployment and more spending in welfare.
So what had Tsipras has done has first measure, according with its demagogic electoral promises? :
He reinstated the public workers that had been dispensed by the previous government, increased social welfare and maintained all the state as it was. As promised no more cuts. He did not increased taxes also.
That put people happy, at least for some months till the money run out.
How the well you think Tsipras was dealing with the situation?
Easy he was expecting Germany
and European countries to forget about the money that they have been borrowing for years, to keep more money coming to allow the country to continue to live about their means and for that he blackmailed EC with going out of the Euro (that would have a negative impact on all European economy).
But After two bail outs and a haircut on the borrowed money European countries had too much of it and could not accept that anymore even that would cost dearly in Euro problems.
What would they say to countries like Ireland
that had also been bailed out and are now living on their own having its citizens and governments made all the cuts in spending to make them sustainable again? What would they say to the citizens of those countries that had suffered (and are suffering) all austerity that was needed if others could keep their status leaving on borrowed money forever?
What would they say to some small Northern countries that have been making huge cuts and huge sacrifices not to go to a bankruptcy situation (needing then a bailout)?
What would say IMF, that has spending on Greece the money that comes from all countries on earth for dealing with economic emergencies, to the much poorer countries that see their money wasted on Greece so they can continue living about their means?
Is Tsipras serious? I don't think so neither their European partners that demanded from Greece extra insurances for more borrowed money because they have not any trust in Tsipras.