An Honest Conversation

I have consistently been saying that the Greek economy was showing signs of recovery until the election of Alexis Tsipras’ Syriza party and how this was a repeat of the same type of irresponsible policies implemented under the New Deal in 1933 to deal with the Great Depression.

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This is an OECD chart showing the steady rise in Greek GDP post the crisis of 2008 with a recovery resulting from starting to sort out their previous mismanagement. There is an instant return to crisis once the same old policies were re-introduced 5 months ago.

For me, this demonstrates the importance of the underlying strength in getting the conditions right in an economy. Similar weakness has been exposed in the Nordic countries for example, they appear fine when it’s business as usual but as soon as an external pressure starts to influence their cosy bubble the high levels of Government expenditures are exposed. Greece was exacerbated on top of that due to the low level of tax revenues they were collecting.

No democracy will willingly vote for increased taxes and reduced services unless there is real leadership and honest communication from their political leaders about why it is in their real interests…

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