The Problem With The EU & Greece – The Problem With Closer Integration

A comment on Yanis Varoyfakis’ blog

Hello Chris, thank you and merry christmas to you as well. About the EIB I have to agree. There is no way to judge as to whether it is better to leave the money in the taxpayer’s pocket or for the tax payers money to be sent hundreds of miles to a central bureaucracy for it redistribute it back to areas which it judges to be worthy. It could be more efficient & democratic to cut out the bureaucracy and leave local people and local banks work out the best use for the money in their area.

About the destitute and unemployed. I think people are aware of what is happening to their friends and neighbours however I believe the biggest issue is that most people feel they are powerless victims of circumstance & government policy. When in reality it is the people who create the wealth and it is the people who finance the government that is destroying them.

You use to be able to depend on the free market to keep governments honest but since 2008 you see the governments working in unison and this elimination of competition between countries for tax revenues and trade has been taken away. Greece being a prime example of this.

Before the Euro there was no way the Greek government could have got away with such massive tax increases, it may even be possible to say that the curve for tax increases in Greece is parabolic when compared to GDP.

The free market would have put the Greek government out of business by now. Unfortunately the Greek government is receiving massive aid from foreigners and this is allowing the government to continue on its course of cruel tax increases coupled to massive cuts in pensions and benefits. In short the government in Greece is now the destroyer of wealth, a cancer feeding off the labour and assets of the Greek people it is supposed to represent. It has long departed from its alleged purpose of being in existence to improve the lives of the Greek people.

Only in an economically unified Europe could this happen. When you eliminate the importance of trade deficits and government deficits governments no longer have motivation to keep taxes low or to spend in a sustainable way. They can simply blame other countries in the union for their own mismanagement and depend on an organisation accountable to no one to print the money to allow the game to continue.

The tragedy of the whole situation is that we are moving towards an environment where there is less competition between governments and when there is nowhere to run it is open season on the citizens.

Free trade and free movement of people was enough, it should have stopped there.


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