The Levy Institute has done some research and they have found that if the government in Greece chooses some businesses to give 30 billion Euros to, that will transform the Greek economy.
Given the Greek government has and is constantly reminding everyone in the world how incompetent it is when it comes to money management you have to question the sanity of the Levy Institute when you hear it recommending that the Greek government is given billions more money from the EU and on top of that it expects the Greek government to choose the winners and losers in the economy ie the firms that get money and those who don’t.
To me this sounds like a recipe for massive corruption and the devastation of established companies due to new entries (with no track record) bank rolled by the government.
This Marshall Plan as the Levy Institute calls it will only lead to more ivory towers and the destruction of self-sufficient firms.
But the recommendation made by the Levy Institute shows something deeper.
It shows that the Levy Institute does not understand the cause of the crisis in Greece.
The crisis in Greece has been caused by massive tax increases coupled to a government that is determined not to lay workers off and a government that is determined not to have a hiring freeze and a government that has simply cut benefits and wages. ie government that expect everyone else to make sacrifices while leaving itself completely intact.
These things are a toxic combination that would implode any economy including a sustainable economy such as Germany.
If the Levy Institute wants to create a sustainable economy in Greece then they need push for massive cuts in regulation (for example taxis, buses, taxes, VAT, business creation and registration, employment & bakeries) and they need to push for the deletion of government department such as the department of commerce and the department of tourism.
The government needs to make it easier to do business and to reduce taxes.
Cutting regulations makes doing business easier, cutting government allows taxes to be lowered.
It is basic economics and something that means spending less tax payer money not more.