This money bug out is probably money hidden from the Greek tax collector. Greeks don’t like to pay taxes.
Greece and its people are both wonderful, but the people have some weaknesses. They have become complacent and the development money the European Community advanced them lulled Greeks into a hedonistic and “me” “me” view on life. Debt from their Olympics didn’t help either. They kicked out a right leaning government for a leftist one last year so the party on life could continue. Well, the party is over and the drinks bill is unpaid.
It’s time for the Greek people to tighten their belts, start working harder and saving harder. Public employee jobs will have to be looked at and the fat cut. Greeks don’t want this to happen and will have a lot of strikes and work stoppage days. Throwing stones at police may work off some anger, but is not an economic solution. The violence and strikes will deter tourism which will further tank the Greek economy. Let’s hope a Greek leader in government or labor or both will step forward and speak the truth to the Greek people.
The truth in Greece is the same truth everywhere. High taxes and profligate government spending are always the road to economic ruin. High tax countries always have high levels of tax evasion. Look at Italy, Greece, France etc. In fact if you look at the Hauser curve generated by examining US tax revenues after WW2 you will see that the federal government gets about 19% of the GDP regardless of large variations in the marginal tax rate. The conclusion is obvious, after a certain point, wealth creators will hide income or elect to make less income as demonstrated by the Laffer curve.
Reducing taxes AND reducing spending is the only way to promote prosperity. Prosperity is the only way to provide for the most vulnerable in any society whether through private charities or government programs.
Greece may have cultural variations from the US but sound economic policy can work virtually anywhere.