Stiglitz: Reform or Divorce in Europe | 79 comments (79 topical, editorial, 0 hidden)

I think - and I've said this before, that everyone is massively overestimating the difficulty of the problem.

In order to balance the european economy,
Germany needs higher wages and higher consumption. Germany has the productivity to back those up, so they can afford it.

It bloody well has to be possible to get popular backing in Germany for a policy of "Germans should be paid more money and have more fun for the greater good". Seriously. How is that not the easiest political message in history to sell?

So basically, what is required is simply that the arguments of Keynes be translated into German and circulated in venues where Germans will actually read them.

by Thomas on Sat Aug 27th, 2016 at 06:24:24 AM EST
[ Parent ]

Re: SEURO? (4.00 / 2)

Persuade Germans to be frivolous and have fun? That is a hard sell!

But I agree, that is by far the easiest solution. Greek holidays for all funded by the German Government! Greek retirement homes for German retirees funded by the German Government - cheaper than keeping retirees in Germany - so it can actually be sold as a thrifty policy. A European health care policy where equivalent treatment is provided in country of residence not country of origin. (Already applies to emergency healthcare interventions, but extended to specialist and after-care). Allows the Greek health care industry to modernise and expand funded by the German taxpayer.

It doesn't take much imagination to make this happen, and all can be sold as a net benefit to Germans as well.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat Aug 27th, 2016 at 12:15:07 PM EST
[ Parent ]

Re: SEURO? (4.00 / 3)

Germany's Drag - The New York Times

So Germany's fiscal obsession has a sort of multiplier effect on Europe, and indirectly on the world, that is disproportionate even to Germany's economic size. And this makes me wonder whether all the sea-change in elite opinion that we've seen will do much good, since the government that most needs to change its policies isn't listening.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat Aug 27th, 2016 at 12:45:53 PM EST
[ Parent ]

Re: SEURO? (4.00 / 2)

Excellent suggestion, Frank! How many Germans would prefer to retire in a warmer climate where the cost of living is lower and where their very presence would be aiding the Greeks? Most will have relatives still working in Germany so they can visit Germany for Christmas and New Year or whenever they wish and luxuriate in the warmth of the Aegean or the Adriatic for most of the year. Cyprus might want some of that action as well.

The problem with implementation is simply the ability to penetrate the minds of German leaders and voters. How might that come about?

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Aug 27th, 2016 at 11:20:30 PM EST
[ Parent ]

Re: SEURO? (none / 1)

"But that would be socialism!" And it appears Europe has become as imbecilic over that shibboleth of idiocy as the US always has been, with a German brass band leading the parade.

by rifek on Tue Aug 30th, 2016 at 02:03:12 PM EST
[ Parent ]

Re: SEURO? (4.00 / 2)

But how does it help the German hereditary oligarchs retain their dominant position?

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Aug 30th, 2016 at 05:23:23 PM EST
[ Parent ]

Re: SEURO? (none / 0)

The German hereditary oligarchs will probably own most of the hotels and retirement homes in Greece... so the benefits to Greece will be limited to increased employment and tax revenues.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Aug 30th, 2016 at 06:43:46 PM EST
[ Parent ]

Re: SEURO? (none / 1)

So by creating a foreign absentee landlord class.

I can see no way that could possibly go wrong.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Aug 30th, 2016 at 06:59:40 PM EST
[ Parent ]

Stiglitz: Reform or Divorce in Europe | 79 comments (79 topical, 0 editorial, 0 hidden)

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