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February 13, 2012
Athens in flames as Greek parliament approves austerity billAs many predicted, civil society in Greece has broken down as a result of the harsh and painful austerity measures necessary to enact if the country was to receive its bailout money from the EU. Dozens of buildings have been torched in the aftermath of the vote.
Is there an alternative to austerity? Some on the left have proposed forgiving Greece her debts, nationalizing the banks, drastically cutting the defense budget, increasing taxes on the wealthy, and increasing wages to help ordinary Greeks get out of debt, thus spurring economic activity. None of this addresses the primary problem; the Greek government spends much more than it takes in. And for the last two years, Germany and France have subsidized Greek workers and pensioneers by agreeing to the first bailout regime that was designed to grow the country out of its troubles. It didn't work. The two EU powerhouses are through with that. Greece must pay its own way or be kicked out of the euro zone. And if the rioters don't like austerity, they aren't going to like depression very much either. |
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