There are many reasons to oppose the various bailouts of the Greek government. Here are my two main reasons.
- I don’t like rewarding investors who make imprudent decisions, and it really galls me to bail out the (mostly) rich people who bought Greek bonds.
- I don’t like rewarding politicians who make imprudent decisions, and it really galls me since bailouts encourage additional imprudent behavior.
Let’s focus today on the second point.
Here’s Greece’s score for the “Size of Government” component from Economic Freedom of the World. As you can see, bailouts have actually subsidized a decline in fiscal responsibility.
And it’s worth pointing out that Greek politicians have been doing a bad job in other areas.
The burden of red tape has been, and remains, stifling.
Greece ranks at the top in difficulty in setting up and running a business among 75 countries, according…
View original post 768 more words
Utopia, you are standing in it! 
Recent Comments