- The Washington Times - Wednesday, June 22, 2011

ANALYSIS/OPINION:

Greece got lucky (“EU attempts to quarantine debt crisis in Greece,” World, Tuesday). With cheap financing and no responsibility to embrace common-sense economics, the nation continued on its merry way to increasing its socialist utopia. That involved jobs for all, a nanny state in every crevice of daily life and, of course, the debt to prove it.

Now with the hand-wringing over bailouts, faux austerity from world leaders and weak reassurances, the denial of truth continues. Greece is bankrupt, Argentina-style. In debt to the tune of 350 billion euros and a stagnant economic model, there is only a remote chance that the country can pay back half of what it owes.

There is only one hope in this case. Greece must unwind government control, sell assets and restore a private economy in place of its moribund, old-style Soviet one. Like all socialist systems, there is a detachment between the official economy and the real one. No one there trusts the albatross, so private wealth stays offshore. No one pays their full taxes and cynicism - the native reflex to all socialist systems - abounds.

Labor markets must be free of restraint and costly burdens, the punishing tax code must become an incentivizing one and the debt must be recognized. The time for change in Greece is now, for the country is at the end of the road.

ROBERT F. AGOSTINELLI

London

LOAD COMMENTS ()

 

Click to Read More

Click to Hide