Posted by: Lloyd Becker | April 1, 2012

Cancer on Society

Greece with all of their problems, they are still continuing to have problems.  The basis of its problems stems from three items.  While Greece has a myriad of problems, I will talk about these three.

These three are the debt, the unions and the politicians.  Considering, the democrat and the liberal has no real understanding, they believe the status quo to fix problems is to excessively tax and tax the people more.  Such is the way the liberal thinks to fix their monetary/revenue problem.

Although, Greece is yet in debt beyond their eyeballs, Germany and France needed to learn from the first time around in bailing them out.  But, yet, again, they bailed Greece out again.  Still, Greece and their problems, still plague the European Community and required another bail out.

Since I set the framework, I will be talking about Greece’s fiscal and political problems, but, let it be known, I am not an economist, but a businessman.  The theoretical lens I will be looking at is from the point of reality and not the point Keynesian economics where the only way to get out of debt is to spend your way out.  It is much like VP Joe Biden says, “you must spend to keep from going bankrupt”.  This is the point.  You cannot spend your way out of bankruptcy, when the more you spend, the closer bankruptcy becomes.

Everything has a point and the point that Greece needs to do what is right and not what has been done historically because they face collapse.  Since I said everything has a point, here are my points to begin to bring Greece back to solvency.

The most basic problem of Greece is the politicians.  Although, I stated there is a problem, this problem is based on the three previously identified areas themselves.  Superficially, understanding the problems that Greece faces, these need to be looked at one problem at a time.  Each problem does have a solution and each one will be addressed, plus an ultimate solution that should and can alleviate Greece’s problem of insolvency.  This will not be an overnight fix, rather, it will take a few years, but it will fix most of the problems Greece faces today.  As a reminder, the three problems Greece has are:  the debt, the unions and the politicians.  So, now, we start.

The debt of Greece is something we have never seen since Nazi Germany.  Although, Greece’s debt is not like Nazi Germany, it is being propped up by the other countries, plus the bail outs by Germany and France.  To begin fixing these monetary problems each country needs to return to their original currency.  The Euro in itself was a problem before it got started.  One country over time would destroy the entire European system and this country so happens to be Greece.

By returning to each country’s original monetary system, this will make each country responsible for their debt.  To base any assumption that would make an educated guess, Greece was already in trouble with their debt and it was advantageous for Greece to be propped up by other countries so they can share in their debt.  But, the debt, basically is the least of their problems.  In consideration, we must look at the unions.

The unions being broad-based as they are, they are bleeding the money from the people of Greece.  The contentions are is that the unions have a choke-hold on Greece and they are not relinquishing their control.  As with anything concerned, contracts are contracts and they are forcing the Grecian government to abide by the contract to satisfy the union contract no matter the repercussions to the people.  The unions control the country to such an extent that they will strike to shut the government down in which they have and caused a financial crisis without any reservation.

Considering, this has become a protracted debate seeing it from the views of the unions.  Greece needs to survive on its own again and the way to bring a “sink or swim” to Greece is to return to their original monetary system as well as any other country should.  Yet, when contending with the unions, these unions need to be done away with at the government level.  Unions are and have been a liability to the people of any country including the United States.  While Greece’s problem to some degree parrots the same union problem as other countries, it is Greece that has spent its way into fiscal oblivion.  In order to start getting back any sanity in their fiscal policies, Greece needs to fully cut frivolous spending and remove the unions from the workforce.  Removing the unions can happen two ways.  One, totally decertify and remove the union by keeping the same workers and the second, fire and hire new workers that will work for private sector wages and benefits.  We must consider the former that it would not work because of the expected outcome of gaining any fiscal responsibility and it would also lead to further rioting, so the latter would seem the most plausible.

While that plausibility of hiring a new workforce, all avenues with the past workforce must be exhausted by offering them work at the private sector rate to include benefits.  For some of these workers, they need to look at providing for their families, or go without a paycheck.

The old adage states, “it takes two to Tango”.  To mess up the dance even worse, another party must be injected into the problem.  This other dance partner is the politician.

Greece, being a socialist country as well as others around them, their politicians are just as liberal.  Although, they may consider themselves democratic, no matter the semantics of the titles, or names, they are still liberals.  The commonality is that socialism cannot exist without liberalism, just as the free market cannot exist without conservatism.  Because of this liberalism, they also create untenable union contracts that the private sector has to pay for.  The liberal will generally spend more money than what they take in revenue from taxes.    Socialism is nothing more than spending other peoples’ money without accountability only to have the private sector to pay more and more again in taxes.

These liberal politicians believe that the only way to get out of debt is to spend more money; seems to me I heard this before, you know, ol’ gaffey Joe Biden.  It is the same with the unions.  The liberal is completely indebted to the unions and union contracts are re-written to give the unions better benefits and higher wages.  These contracts, again, become more untenable, the debt spirals upward and countries like Germany and France rescues Greece from default, or bankruptcy.  Money is given to bail out Greece and Greece with the bail out money pays off the debt to the union with little money left to pay the remaining debt to the other creditors of Greece.  These politicians need true lessons in economics to bring them back on the road to fiscal repair.  The Grecian people need to remove these politicians and replace them with politicians that will begin to repair their monetary policies that will allow them to become a solvent nation again.

Fiscal solvency and/or insolvency does not happen overnight, but the new politicians will have a lot of late nights to do trying to fix the problem.  But, in the first year, they can strip the union presence from the governmental infrastructure, cut spending in the necessary areas and spend money in places that are necessary to maintain those services.

In conclusion, Greece needs to eliminate the unions because they are a cancer on society, as well as any society.  The Grecian people as a whole needs to remove their politicians and install new people who can maintain fiscal accountability to the people.

As for a possible return to the Drachma, they should!  The fiasco of the Euro, is in itself a distinct departure from individual fiscal responsibility because it causes the entire European Community to be saddled with the debt of another country’s monetary failures.  Since there is that consideration of Greece returning to the Drachma, Germany and France should return to the Deutche Mark and the Franc respectively.

So, what are the basic cancer on society?  The answers are simple.  Liberals, unions, excessive debt, the Euro, excessive spending and socialism.

This paper, I could send to the Tri-City Herald, but why?  These people are just as liberal as the Editor who runs the paper.  He has his nose up Obama’s butt just as the other liberal news agencies, or did he receive a death threat also.  And, if he did, why was it not reported?

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