Tsipras Minimum Wage – No Understanding Of Basic Economics

Alex Tsipras is calling for an increase in the minimum wage as a way of increasing employment in Greece.

It is ironic that a communist/socialist politician would have views so close to those of the Keynesian “capitalists” that currently run the central banks of the western world.

To quote the above article directly

” restore the minimum wage to 751 euros a month -Creation of new jobs, given that according to the latest econometric study of INE, this will lead to GDP growth by increasing demand from the first year”

Alex Tsipras is under the impression that if you increase the cost of a commodity, in this case labour, you increase the demand for it. To put it another way, Alex Tsipras believes that if you increase the cost of employing someone, employers are going to want to employ more people.

It is this type of basket-case economics that has led the Greek government to have a massive and unsustainable debt and for unemployment to be over 25% of the population.

The really disturbing thing is that Tsipras stands a very good chance of becoming prime minister of Greece in the next few years.

If this were to happen there is only one outcome and that is the complete collapse of the Greek economy and the complete surrender of Greek sovereignty to the EU.

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