Re:Is Greece entering a Death Spiral?
by po on Thursday August 19, 2010 @01:50AM
(#1616631)
> Greece is going to have to learn to rely more on itself, which means stripping down government expenses.
I never understand this logic. I'll agree that building an economy on payments from the EU is bad. But now that that damage has been done, how exactly do you then make the jump to the concept that government expenses are an instance of not relying on yourself?
You're right, inflating the currency would help (if they weren't on the euro) but if you have high nationwide unemployment, the private sector isn't employing people, and they need to be employed to have health insurance, then the government should start paying these people to dig holes and fill them in again.
I never understand this logic. I'll agree that building an economy on payments from the EU is bad. But now that that damage has been done, how exactly do you then make the jump to the concept that government expenses are an instance of not relying on yourself?
You're right, inflating the currency would help (if they weren't on the euro) but if you have high nationwide unemployment, the private sector isn't employing people, and they need to be employed to have health insurance, then the government should start paying these people to dig holes and fill them in again.