difficult to accept the fact that capitalist economies with
centralised oligarchic planning, are actually communist in
their economic real politik.
The US, UK, Germany, the whole EU.
It used to be that the GATT was designed to get
rid of any and all communistic government ideas by
stressing that
NOBODY WAS ALLOWED TO SUPPORT THEIR COUNTRY'S BUSINESSES
EVER AGAIN, with threats of big penalties
Well, since 2008,
who's been helping their banks with public money?
the very countries that dreamt up the GATT
to screw the rest of the world.
I've been saying for a long time that Greece has
the worst aspects of capitalism
and the worst aspects of communism
all rolled into one.
The first one has been proved conclusively,
and the second too, because it's
a research-driven fact that Greece's
oligarchy is stifling the economy.
Well, now it can't , because there is none.
I wonder why the Troicycle isn't beating up on them
instead of their lowly employees. @sarc
Michael Porter, of Harvard
Key results:
-"one of the very worst macroeconomic environments in the world
-"the worst public institutions in the developed world
-"only 16 out of 142 countries with a less efficient labor market.
-"the worst public institutions in the developed world
-"only 16 out of 142 countries with a less efficient labor market.
-"GDP per capita was more than 50% above
where it ought to have been judging
by its ranking for business competitiveness
where it ought to have been judging
by its ranking for business competitiveness
And then people wonder why Greeks cheat. You have to, just to survive
in such a situation. With all public officials looking for bribes,
what do you do?
and then they wonder why it is that Greeks are so successful, outside
of Greece. Because life is easy out there. It's not Greece. Non-Greeks
live the easy life. Pay taxes and get public services.
You want to see how that works best, see Canada.
Why did he waste his money and time. He could've asked me.
IshitUnot:
Wall Street Journal
Alen Mattich
Greece’s Uncompetitiveness: Discuss
Whatever agreements are struck on Greek debt, whatever austerity measures the country’s politicians promise, whatever loans or aid is extended to the country, there’s one problem Greece can’t easily escape.
It is deeply, deeply, uncompetitive.
In the World Economic Forum’s latest competitiveness report, Greece is the lowest ranked European country, barring Serbia and Bosnia and Herzegovina. Indeed, it is the lowest ranked country in the developed world. The country has one of the very worst macroeconomic environments in the world, has the worst public institutions in the developed world, and there only 16 out of 142 countries with a less efficient labor market.
A 2008 study on competitiveness by Michael Porter for the Harvard Business School (its focus was on Saudi Arabia, but the cross-country data is very useful, hat tip to the LOL Greece blog) shows just how far out of whack the Greek economy was in 2007.
Mr. Porter charted GDP per capita on a purchasing power basis against business competitiveness. Greece, he found, was a considerable outlier, its GDP per capita was more than 50% above where it ought to have been judging by its ranking for business competitiveness.
Since then, Greece’s GDP per capita has fallen, but so too has its competitiveness ranking. Assuming that structural changes will make it more competitive in future, including ridding itself of anti-business laws, reducing the role in the economy of its bloated bureaucracy — all of which will be hard, but easier than improving infrastructure and human capital which can take decades — its competitive ranking should improve, say to the level of Spain or the Czech Republic or Estonia, all of which cluster at around the same level, somewhere around the third quartile for European countries.
Should this happen Greece would still need to see a fall of around 20% in its GDP per capita to reach trend. Which means substantially more suffering for the Greek population — erosions of living standards are never fun.
For too long, Greeks were made to believe they were richer than they were. The process of returning their apparent wealth to levels that can be justified by the economy’s productivity is a slow one, especially since the normal route to quick adjustment, through a currency devaluation, is closed to Greece.
Will the Greeks be able to manage before they finally decide that the euro experiment isn’t worth the pain? Unlikely, because the adjustment won’t need just a few changes in laws and wage cuts, but a more profound change in the country’s political culture. These changes take years, and it’s unlikely Greek politicians have the time they need.
