American Elephants


A Vast Self-Inflicted Tragedy Has Struck Greece. There Are No Easy Answers. by The Elephant's Child
July 5, 2015, 8:59 pm
Filed under: Communism, Economy, Socialism, Statism | Tags: , , ,

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Well, the matter of Greece. Janet Daley describes the problem in The Telegraph.

There is no point any longer in trying to make sense of this. It has gone beyond sense. It is now incomprehensible in the strict technical meaning of the word. The “options” available are all catastrophic and delusional in varying degrees and combinations, and nobody is actually going to get to choose between them anyway – at least, nobody in Greece. To the extent that they have had any involvement – or culpability – in this matter, the Greek people must come to terms with the consequences of electing Russell Brand to head their government. Voters do have some responsibility for the choices that they make. That is what distinguishes mature democracy from the students’ union. But given the price that they are paying for that moment of mad frivolity, it seems harsh to condemn, especially as the prospect of fiscal rationality had already been ruined by the fecklessness of previous governments and external forces beyond their control.

It’s a marvelous example, once again, of the failure of socialism. We have seen it over  and over, and the empty stores in Venezuela were only a harbinger of the empty stores, already, in Greece. Spare the empathy, the Greeks brought it upon themselves. A new book from James Angelos:The Full Catastrophe, looks at the widespread tax evasion and benefit fraud. How about an island where everybody pretends to be blind? Or  doctors who earn only €12,000 a year — yet live in the most exclusive neighborhood in Athens?

It was rumors of the ‘Island of the blind’ that brought journalist James Angelos to Greece. Turned out that 61 of the supposedly blind residents of Zakynthos, were quite happily driving around the island, and an astonishing 496 of the 680 blind residents were not blind nor partially sighted. It was all a scam that could be traced back to one ophthalmologist and one official who cost the government €69 million. Being blind got you €724 paid in benefits once every two months, and a reduction in utility bills.

When the government called for those claiming disabilities to present themselves at government offices so official records could be updated, 36,000 failed to show up.That scam saved the government €100 million a year. When they began to check the rolls, they found that 8,500 unlikely pensioners claimed to be over age 100.

Neighborhoods of opulent mansions with their own pools were apparently occupied by virtual paupers who were living on a paltry €12,000 or only €8,000 since they were allowed to declare their own incomes for tax purposes. Official records showed that just over 300 homes in Athens most exclusive neighborhood  had swimming pools, and had paid the tax for the luxury. When the bureaucrats looked at Google Earth, it appeared that the real number of pools was closer to 20,000. But well-to-do home owners promptly bought camouflage tarpaulins to conceal their existence from tax inspectors flying over.

The picture of a pensioner crying in the street when he learns that his pension has been reduced to €120 is heartwrenching. Stores are empty, medicine short, and the government is projected to run out of cash this week. Nobody plans to rescue them. Much of Southern Europe is already coping with floods of refugees from Africa and the Middle East. Bureaucrats like to buy votes with their empathy. We care about  you and we will give you stuff. But bureaucrats need to stay in power, so they exert more and more control, which needs larger departments and higher salaries for the bureaucracy. And so it goes. Inflating and inflating the balloon with the inevitable result.


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