The Delusion of Socialist Comforts

Economic reality has hit home in Europe as of late with the Greek debt crisis. Politicians of all stripes prey on the weak-minded, but the sheer lack of common sense being paraded around is approaching levels not seen since Homer Simpson's advice to his son about whether to take the $10,000 cash prize or an elephant:

Bart, with $10,000, we'd be millionaires! We could buy all kinds of useful things like...love!

Let's count the insanity.

1)  On a May Day rally in opposition to the IMF funding - these are Greeks in opposition, not Germans - crowds chanted: "No to the IMF's junta." The IMF is negotiating with Greece about lending them some money. In turn for their portion of the $145 billion, they demand certain conditions. Conditions like the government must cut some pensions to the public sector. Of course, Greece doesn't have to do this. They can happily go elsewhere and raise their funds from someone else. Like, um, yeah, um, where did everyone go? They're not so much in opposition to the IMF as they are in opposition to anything in the universe that would stop their entitlements coming from the government. Which means they are in opposition to the science of mathematics. The only alternative to the IMF/Euro bailout is default on their debt. Which would mean no more issuance of new debt. Which would mean the entitlements would cease or experience draconian cuts due to complete lack of euros to pay the bill. Normally, in this scenario, a country prints a ton of money and devalues their currency. Greece has done this before in the 80s and 90s. This time they can't because the government doesn't have the authority to do that due to the shared currency. So the Greek lads are unknowingly campaigning for a worse outcome than the very sweet deal they received.

2) Meanwhile, as few as a couple of weeks ago, Papa George himself was railing against the evil, greedy bond traders. Turns out that rhetoric didn't stick because those SOBs are nowhere to be found.

3) Still others think it is all an American plot to annex Greece. Maybe there is some strategic geographical significance to having the most islands that I am overlooking here.

4) Others say it is another German occupation. Yeah, last I checked, they were just dying to help out


In the end, these delusions simply can't escape economic law. Having a society where people retire in their late forties with an unemployment rate of 30% amongst 16-24 year-olds that make up an ever smaller percentage of population does not work. Ever. The reality is that this will end badly, and the poor will be the ones hurt most. The very people that are deluded into a temporary alternate reality will be the ones crushed. Rich people will do what they always do - leave.

That's the problem with reality. It tends to persist despite mankind's best efforts.

The Delusion of Socialist Comforts