#wilsonsmillie

By Wilson Smillie, July 2015

Austerity: the condition of living without unnecessary things … with limited money or goods, or a practice, habit or experience that is typical of this. Cambridge Dictionary.

Political definition (if in opposition): bad stuff, created by somebody other than us.

Political definition (if in government): unpalatable, but necessary because we’ve seen the bank accounts left by the last lot.

Today, the other half of the Greek comedy duo, Varoufakis, accused Greece’s creditors of ‘terrorism’. That’s fighting talk if ever I heard it, but ain’t they supposed to be negotiating? After reading the BBC article here I’m still not sure what he’s getting at: was it because the creditors wanted their agreed payments made on time or because they wouldn’t lend Greece any more funds to make those payments?

BTW, it was him and his mate who sprung the referendum on everybody, during last weeks ‘negotiations’. If you want the peoples opinion you have to allow them to speak. The BBC article contains a link to another piece that discusses how mature governments should draft referendum questions so as to be impartial and clear … unlike the Greek one. It’s worth a read.

Greece has been a financial basket case for decades, if not centuries, but in the age of Globalisation (its here to stay whether you like it or not) the inability of successive Greek governments to manage its people is magnified across the globe; everyone else gives them cash in support, but they just spend it.

So, just who is in austerity here and why?

In 2008/2009 Greece wailed in anguish along with the rest of us at the greed of the bankers. For the next two years nobody really believed they were living through the 21st century’s ‘Great Depression’, but seven years since the Credit Crunch most of us can say we were. Many lost money because of it (and also homes and jobs). And for the record, I lost quite a lot.

The G20 group of major economies hitched up their breeches and got on with implementing the various flavours of Austerity to balance the Global books and today, in mid-2015, most of us are in a better place. Even Spain, Ireland and Italy.

Greece hasn’t moved a millimetre.

Its problems are deeply rooted, cultural and can be summarised as: no Greek wants to pay any tax and consecutive weak governments won’t enforce it.

Does the fact that we, the rest of us in the recovering economies, having eaten our gruel, and now enjoying the occasional steak frite, should help out our brother who’s fallen behind? 

Put like that, yes. But that doesn’t take account of Greece’s previous convictions for accepting bailouts and not keeping to the agreements. The creditors’ requests are simple: put some revenue generating policies in place and enforce them, and we’ll help you out of the hole you’re putting us all in.