Greece, the need for reform

Problem with Democratic vote.

The Government does not have an economic plan. The situation is such that they made election promises and events since being elected include (not limited to, what I am aware of).

. The cancellation of asset privatization
. Repay IMF loan, no default possible, hence raid Pension Funds and Reserves
. Attempt to restructure finances
. Re employ cleaners (yes not only the finances but the Civil offices must have been a mess)
. Attempt to reignite war repatriations

The Finance Minister himself is an erratic Marxist at heart and technically the party itself, is extremely to the left of politics.

Should debt relief be granted, no indication has been given as to which path they will follow, to ensure that Greece escapes the burden of inherent corruption and economic stability.

The problem exists, how does the Government (technically one that is to the left of socialist ideals, which would equate to anti business, higher taxes for the rich, reduction of taxes for the middle and lower classes and an introduction of a social net) overcome the economic problem?

What must be borne in mind is that Greece has existing corruption entrenched within Society, fraud (principally through tax avoidance), low retirement age with excellent benefits plus a strong union presence and intertwined within this framework no true competition.

From my point of view, corporate and individual freedoms are necessary and this must come about without weakening the Government (without a wall separating Government and business which, without this incorporates real crony capitalism).

Thatcherism is out of the equation, so the Government has to seek answers elsewhere.

Taxation review, union reform is paramount.

Employment is necessary but who creates the employment opportunities?

If this was the U.S. The Democrats (Socialists) like the honorable Hilary Clinton has the answer… Government. Regret that Mrs Clinton is way out of her depth on these matters, but this highlights the problem of all Socialist Governments. If you then look at the Clinton Foundation one no need wonder anymore as to how they became so wealthy.

In Greece, those people and businesses that actually can create jobs, are the ones that are being targeted by the Government to collect taxes. This destroys investment and transfers wealth elsewhere.

This Government has to appease a lot of people with an economic fix, out of left field, otherwise Greece will continue to sink.

A solution is available and radical.

I hate income taxes, destroys our souls (See below Chordorov) and designed to make us all criminals, in attempting to minimize the impact of these taxes.

So why not abolish income taxes?

Abolish indirect taxation?

Reduce Corporate taxes to 15% or lower to encourage new businesses and investmemt capital.

Allow an amnesty for tax lodgments/payments and amendments. Reduce penalties during this period / reduce tax payable, if undertaken within the amnesty period.

Why not introduce a 20% Goods and Services Tax/Value Added Tax across the board?

Increase retirement age to a minimum of 65, reduce pensions to a ‘reasonable’ sustainable level.

Increase the domestic Central Bank borrowing rates, to encourage savings and abolish Government Debt entirely.

Go against the trend, to rekindle deposits and investments. A whole paper can be written on Central Banks meddling and creating unwanted bubbles. Simply put business cycles exist, as too Government cycles, as long term politicians care not for society but for themselves. Interference by Central Banks create greater asset allocation in the wrong places and the Negative Interest Rate Policy is so stupid, it is self defeating creating a Bond bubble which will have huge negative Global economic consequences.

This approach on taxation would then empower the very people who support the current Government. No discretionary treatment, a user pays approach.

Issue a ‘Medicare/Identity’ card to allow offsets on a services tax to the elderly, unemployed and sick. Dispense with Income Tax Returns for individuals and maintain database via the card system.

Free the people and they will respond in kind.

The way that I see it there are exactly two options on the table, in the end it is Greece’s choice.

1) Greece reforms so that it can stay in the Eurozone. In other words, it needs to adjust their budget so that the revenues do not exceed expenditures. They cannot borrow the gap, as this is now history. On this basis austerity remains, perhaps for a very long time.

2) Greece refuses these reforms. Refusal means Grexit, whilst Tsipras says otherwise, he will have no choice.

50 shades of grey are evident in the “ending austerity” and “growth policies” or opening up new sources of revenue like “WW2 reparations”.

Simply put, ending austerity alone will not lead to the inherent domestic problems the Greeks face. There has to be a black and white reforms that lead to sustainable growth in revenue over and above the Countries expenditure.

One could say that Tsipras (and Yanis) are hoping that someone else pays. I regret to inform both of them that this will not happen. An exit therefore is on the table.

And for Yanis, rather than putting out wildfires, do something constructive and restructure the economy so that it can achieve something. You state you hated Thatcherism but the dear lady did break the back of the Unions something that both you and Tsipras have to tackle. Either that or get out of Athens.

A concerted effort must happen to reform, otherwise forget everything.

You are naive and dishonest to yourselves and the electorate if you do not!

Tsipras’ visit with Merkel is his own form of wanting to postpone the inevitable, Merkel will not change anything, maybe proffer some concessions.

Augusto Zimmerman describes Marxism as ‘primarily a social, political, and economic theory that interprets history through an evolutionary prism. Marx claimed to have discovered a “progressive” pattern controlling human evolution, which would lead humanity to the advent of a communist society of classless individuals. On this basis Marx defined the state and all its laws as mere instruments of class oppression, which would have to disappear when the final stage of human evolution were finally accomplished.’

Instruments of “class oppression”. The only successful Marxist regime being the Lenin/Marxist manifesto. Zimmerman states “In every communist regime around the world, the attempt to enforce the Marxist dream of equality of wealth has led to gross inequality of power and, to be sure, to governmental oppression and “deification” (not to mention equality of poverty among the masses). Thus, in the twentieth century alone, Marxist-inspired governments killed at least 100 million people. Such a bloodbath is simply the by-product of a naturalistic worldview that deems the most powerful humans to be the ultimate arbiters of right and wrong.”

Frank Chordorov on Income Taxes (The Root of all Evil)

“The only beneficiaries of income taxation are the politicians, for it not only gives them the means by which they can increase their emoluments but it also enables them to improve their importance. The have-nots who support the politicians in the demand for income taxation do so only because they hate the haves; although they delude themselves with the thought that they might get some of the pelt the fact is that the taxing of incomes cannot in any way improve their economic condition.”

On poverty, Benjamin Franklin

“I am for doing good to the poor, but…I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed…that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

 

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