Quote: (04-08-2019 03:53 PM)Vlado Wrote:
First of all, do not make comparisons between Greece and the UK, because the UK is one of the largest economies of the globe, albeit it depends a lot on imports and produces considerably less good than let's say Germany, but still, not the rigyt comparison.
Nowhere did I compare Greece to the U.K.
With Britain on the decline though, perhaps the two countries will have more and more in common. Lots of countries that once had powerful empires (Greece, Italy, Mongolia, Spain, Portugal, etc) are now economic backwaters, so it's sadly not unrealistic for the U.K. to end up in a similar situation in the future, be it decades or centuries from now.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
You guys speak about the '' destruction'' of Greece like Greece it was some kind of economical superpower.
Another strawman, no one suggested that Greece had a great economy beforehand; only that the EU's actions made matters worse and disregarded the wellbeing of the Greek people.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
First thing you guys need to know is that greece in early 70s was a shithole, even warse than balkan communist countries.
Greece'e economic prosperity started when Greece started the negotiations to Enter EU and when it entered EU in the middle 80s.
This time and the after years coming was the time when agriculture, tourism industry prospered in Greece,.
All the big companies in Greece were created more or less this time.
Correlation =/= causation. The mid-1970s (5 or so years before Greece joined the EU) was when Greece became a democratic state, following a recent history of foreign invasions, political turbulence and military dictatorship. It's likely that the greater stability and openness of the new administration would have made a significant contribution to encouraging foreign investment and increased tourism, with or without EU membership.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
Also From 1986 till 2010 EU in different ways, from grants to investments to loans low interests fees, has invested or implanted 400 billion euros in Greece.
Greece became a developed country because of the EU and the other balkan countries did not have not even 5% of the luck that greece had.
It's difficult to estimate how much of a difference the EU grants made to economic growth. Somalia received US$1.3 billion in aid in 2016, and they're probably going to remain a shithole country for the foreseeable future. If we concede that the EU funding
did make a difference, that funding could still have come from the individual countries that make up the EU, without the need for membership.
The Balkan countries were also ruled by communist dictatorships up until the late 1980s/early 1990s and thereafter disintegrated amid interethnic conflict; that might help to explain why their fortunes differed from those of Greece.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
Greece went bankrupt for 2-3 simple reasons: corruption, huge administration (were salaries went up too high and many salaries were given to people who were recorded as dead for years), too much spending in general and maintaining an army which was and still is to huge for Greece.
You're correct that the Greek government mismanaged their economy, which made them vulnerable to economic perturbations. But it's inaccurate to say that the 'sovereign debt crisis' was only the result of government debt. It was preceded and triggered by an international financial crisis that had multiple causes, among them deregulation and irresponsible private sector lending practices.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
( also Ouroboros, Greece has quiet a large army (not because if it's ecoonomy as explained before) and is not e defenseless country).
Upon checking, their army is admittedly larger than I thought, although no match for the combined forces of the EU. It's also worth remembering that the most powerful and influential member of the EU is the same one that easily invaded (but not so easily occupied) Greece only 7 decades ago.
Quote: (04-08-2019 03:53 PM)Vlado Wrote:
If EU was not going to intervene and put restrictions in order to give billions to Greece ( again) to recover it's finances, Greece would have gone out of the Euro zone and maybe EU and today the GDP would have been the half it was in 2008.
Greece should never have joined the Eurozone in the first place, since it acted as a monetary straightjacket, limiting their policy options in responding to the financial crisis.
As for whether the EU should have imposed restrictions on Greece in the form of austerity, the decision to do so was (ostensibly) based on the policy merits of expansionary fiscal consolidation - the idea that austerity should be applied during a financial crisis in order to boost economic recovery. But expansionary fiscal consolidation simply doesn't work; instead it inhibits economic recovery (as the empirical evidence and many research papers demonstrate). By insisting on harsh austerity measures, the EU/IMF only succeeding in aggravating Greece's financial woes (with resultant negative effects in the social and political spheres), in turn making it even harder for Greece to pay back its loans.