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Greeks Vote "NO" on EU Terms

posted by martyb on Monday July 06 2015, @08:57AM   Printer-friendly
from the getting-what-you-asked-for-may-not-be-getting-what-you-want dept.

kaszz writes:

The Greeks voted no to the European Union's terms, despite warnings from the EU that rejecting new austerity terms would set their country on a path out of the Eurozone. 62% voted "No" while 38% voted "Yes".

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  • (Score: 0) by Anonymous Coward on Monday July 06 2015, @08:34PM

    by Anonymous Coward on Monday July 06 2015, @08:34PM (#205827)

    Keynesian stimulus spending works the exact same way as it does for normal people.

    If you borrow/grant money to buy a capital good that saves or earns you money it is usually a good deal.

    If you borrow/grant money to pay back someone else you have a real problem that will only get worse with more loans. The reason it gets worse is because you did not fix the underlying issue.

    Keynesian was very up front about it. You use stimulus to build things. Where most people get wrong is to assume he meant 'free money'. The theory is you use government spending to build capital which creates jobs and wealth. If you are using it to pay back loans that does neither. In fact it usually does the opposite. The 'flaw' with his theory is that the gov can create capital. That is a major assumption. If the gov can not create capital it will end up making maters much worse as it would actually destroy wealth and at a scale which can make it much worse.

    Normally in these sorts of economic arguments I can pick one or two chapters out of this book http://steshaw.org/economics-in-one-lesson/ [steshaw.org] and be pretty close to what not to do. In this case they pretty much went thru the book and did them all. My speculation is next up will be the gov actually seizing assets from people and high monthly double digit inflation. Especially if they exit the euro.

    I for one would not want to live in Greece right now.