“How can something like this happen without prior warning?” asked Angeliki Psarianou, a 67-year-old retired public servant, who stood in the drizzle after arriving too late at one empty ATM in the Greek capital. “I want Tsipras to tell me how I am going to make it through the week with €10 in my bag with rent coming up. It has never been as bad as this.”. WSJ 6-29-15
Greece is in trouble, is there anyone who doesn’t know this, except maybe the Greeks?
The expiration of corporate tax breaks in 2006 prompted an exodus of pharmaceutical and other manufacturers, nudging the island into a deep recession…
The economy, meanwhile, faces big structural problems. Sprawling bureaucracy and high electricity costs stunt business investment. Tax evasion runs rampant. Unemployment is high, at 12%, and fewer than half of all civilians are in the labor force, compared with around 63% on the mainland.
Economists say a bloated welfare state discourages work—the share of the working-age population on disability is nearly 50% higher than in the 50 states —while a minimum wage that is high relative to productivity and local income reduces job opportunities for young and low-skilled workers. WSJ 6-29-15
Are there lessons to be learned in all this? Read the above paragraph. It’s the classic I want more, but let somebody else pay for it. In other words the drum beat of the liberal left. If you want all the “free” stuff and generous benefits being promised by the likes of Old Brrnie and Old Liz, you better also ask how it will really be paid for …. but of course, you probably won’t ask; no sense moving beyond the good news. But you may want to consider why tax evasion is so high in these situations.
PS Just so you know, those second two paragraphs above are talking about Puerto Rico 😂