Quote:
Originally Posted by stampsx2
Except the ideology doesn't work. There's no incentive for the weakest link to do better. There's no accountability to the government or the people.
With the ideology you desccribed, why should i succeed? What reward will there be? Why shouldn't i just sit back, chill out and wait till the stronger ones hand me some money?
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First of all, you are just factually completely wrong.
Neither Canada or USA or Finland or any other area where this system is in place has collapsed, despite this being status quo politics pretty much everywhere in the west for decades. This is how the western economies already work.
The only thing new here is that we're no longer asked to support our poor brethren in Karelia, which we accepted as those guys are still Finns. (Feel free to localize this for other countries). We're now asked to support our poor brethren in Greece. And that's a pretty big leap.
Second, you mistake ideology for basic facts.
Either everybody has their own money, we allow taxes on imports and we let everybody have their own economic policies, or you start handing out money in some form. Or you watch countries crash. That's pretty much the options as far as I've read.
The eurozone as is just doesn't work. It's a fact. You could fill a small library on books from the last decade debating the issue, but that basic fact hasn't really gone away. You have to do something about it at some point.
If you have other solutions I'm sure professors of economics would be happy to hear you out.
(There are a couple of alternative solutions that I didn't mention, but here's why they don't work:
a) Growth. Just keep growing so everybody has money.
Small problem: historically you can't sustain that kind of growth. In fact for a good while now global economy has had trouble coming up with any kind of significant growth.
Big problem: we are running out of planet.
b) Austerity. If everybody just lives neatly nobody ever gets into trouble.
Small problem: economics don't work that way. If everybody saves, nobody buys and the economy stagnates.
Big problem: People always screw up. )