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I'm a (classical) liberal, but a lot of the current Greek position makes sense. 1. To get future investment, it's more important that Greece starts growing aga
by argumentum 11y ago
I'm a (classical) liberal, but a lot of the current Greek position makes sense.
1. To get future investment, it's more important that Greece starts growing again than that it pays off existing debt. While socialist policies can stifle growth, it seems in the current situation growth is stifled more by a strong Euro than by tax evasion, corruption or overspending.
2. Greece was the fastest growing state in Europe before the Euro. With all its natural advantages, there's no reason why it couldn't return to fast growth w/a devalued currency.
3. Syriza doesn't seem as "far left" as described. I certainly don't think they will go down the totalitarian communist route, vs becoming a democratic welfare state like the Nordic states.
4. As constituted, the Euro favors exporting economies over tourist/shipping economies like Greece. Switzerland is in many ways similar to Greece structurally .. a tourist mecca of about 10 million people and a service oriented economy. It does export a lot, but mainly specialty items (watches, cheese, chocolate etc). Greece would seem to be better off as a Switzerland on the sea, with strong EU relations but independent monetary policies.
- s3nnyy 11y agoDude living in Switzerland here. Could you elaborate more on the structural similarity to Greece? Yes, Switzerland has tourism but - unlike Greece - I doubt that they depend on it. Also, watches and cheese are only the tip of the iceberg. Switzerland's wealth probably derives from mega-banks like UBS and the not well-known, but enormous industrial sector (e.g., Nestlé, Novartis, Roche, ABB). Before I moved here, I thought Switzerland is only about cheese and chocolate, but it really is an oasis of wealth unparalleled in Europe due to various reasons; here is my medium blog post about how it is living and working here: https://medium.com/@iwaninzurich/eight-reasons-why-i-moved-to-switzerland-to-work-in-it-c7ac18af4f90 https://medium.com/@iwaninzurich/eight-reasons-why-i-moved-t....
- argumentum 11y agoFor sure, Switzerland is an amazing wealth-generator. In addition to all you mentioned, it also exports great tennis players, my personal favorite Swiss product :) I meant that it is a strategically situated, naturally beautiful, culturally strong state of about 10 million people. Greece shares all of these traits, and can build up industries like Switzerland has if it has a more independent state and implements Swiss-like policies. They won't be the exact same industries .. they both attractiveness for tourists, but people come to Switzerland to ski and trek, and go to Greece to sail and relax on the beach. Similarly Switzerland might make drugs, chocolate and watches, while Greece excels in shipping & shipbuilding. Certainly Switzerland is far ahead of where Greece is now. But it's proof that a similar state can become a economic powerhouse without the Euro. With a devalued currency, in addition to boosting existing industries, Greece will become an attractive place for foreign multinationals to setup factories, so it can grow new industries from scratch as well.
- derriz 11y agoI've been in both (lived in Switzerland for 5+ years) and I couldn't imagine two more unlike countries than Greece and Switzerland, structurally or any other way. To put it mildly you're completely wrong. Switzerland is an exporting powerhouse (watches, cheese and chocolate? - the bulk is phara, precision electronics, chemicals, technology, banking services, etc.). Greece is em.. not.
- Tomte 11y agoThe number one reason for the wealth of the Swiss is that they prudently stayed out of wars as much as they possibly could. While the rest of Europe had to clean up the rubble and rebuild everything periodically, the Swiss could incrementally build up their wealth.