tag:blogger.com,1999:blog-2761684730989137546.post7270316734969935576..comments2024-03-28T04:13:36.779-04:00Comments on Mike Norman Economics: Bill Mitchell — Greece still should exit and escape the grip of the vandalsmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2761684730989137546.post-31128434602776135872017-02-12T18:25:45.145-05:002017-02-12T18:25:45.145-05:00«a fairly large and sustained fiscal deficit is re...«a fairly large and sustained fiscal deficit is required in Greece to rebuild some of the lost capacity»<br /><br />The is the usual quite delirious argument by B Mitchell and many others, and it is delirious because the greek economy does not have any «lost capacity», at least as to *production*, as he most likely understands very well.<br /><br />Between 2004 and 2012, with a peak in 2008, greek GDP surged by 20-25% entirely because of government borrowing being handed out to government supporters in various ways, financing a surge of 20-25% in imports. Then the borrowing ended and imports and GDP fell back to the previous level.<br /><br />Y Varoufakis very candidly observed a while ago that «<br />yanisvaroufakis.eu/2012/05/16/weisbrot-and-krugman-are-wrong-greece-cannot-pull-off-an-argentina/<br />«idle productive resources in Greece cannot produce much for which there is increasing demand»<br /><br />What the greek economy needs to get back to the higher level of GDP is large fiscal transfers in hard currency, from rich countries like the USA or the UK, for around 20-25% of greek GDP. This would «rebuild» the greek «lost capacity» for higher consumption and imports, and GDP will be restored to their 2008 level.<br /><br />The question is *why* the USA or the UK should give to the greek government fiscal transfers equal to 20-25% of greek GDP.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-81926994849983503482017-02-09T13:40:36.610-05:002017-02-09T13:40:36.610-05:00Great idea to set the Drachma at parity with the E...Great idea to set the Drachma at parity with the Euro. Give Greece economic equality outside the EU.Noah Wayhttps://www.blogger.com/profile/12012500819097539976noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-4056185999840503452017-02-09T03:10:59.742-05:002017-02-09T03:10:59.742-05:00I don't read Yves Smith but I agree that there...I don't read Yves Smith but I agree that there should no government subsidies for private credit creation. There should be a huge increase in the minimum wage though. Put money in the people's hands and the economy will improve. Another big tax cut for the rich is not the answer.GLHhttps://www.blogger.com/profile/02791463748430739099noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-70820107004258764282017-02-08T15:54:29.050-05:002017-02-08T15:54:29.050-05:00Looks like they are back to an external deficit......Looks like they are back to an external deficit...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-50321746498411656122017-02-08T14:22:59.390-05:002017-02-08T14:22:59.390-05:00Bankers, the scourge of the world. GLH
Government...<i>Bankers, the scourge of the world.</i> GLH<br /><br />Government subsidies for private credit creation and other welfare proportional to wealth are a plague on the world.<br /><br />And who supports them? Yves Smith for one.<br /><br />Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-77850412368301744122017-02-08T14:21:16.033-05:002017-02-08T14:21:16.033-05:00This comment has been removed by the author.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-13122451712097116232017-02-08T10:31:31.450-05:002017-02-08T10:31:31.450-05:00People doesnt want that, majority doesnt want. Is ...People doesnt want that, majority doesnt want. Is political suicide. Mike is right.Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-28812284889607296882017-02-08T08:28:27.958-05:002017-02-08T08:28:27.958-05:00A my parent's place yesterday I was surfing th...A my parent's place yesterday I was surfing thru the Greek satellite channels ... and there was Varoufakis, in a news interview in Greek, stating that "they" now leave us no choice but to return to the drachma. Just sayin'... :)<br /><br />And ...<br /><br />Coming to a movie theatre near you: “She was warned. She was given an explanation. Nevertheless, she persisted,” -- The Elizabeth Warren Story ;)lastgreekhttps://www.blogger.com/profile/00354740659933239445noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-32222877859587080262017-02-08T07:16:12.751-05:002017-02-08T07:16:12.751-05:00Never going to happen. Not even France. Not even w...Never going to happen. Not even France. Not even with Le Pen. They love the euro. They don't see it as their problem.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-7075669429587387772017-02-07T23:42:46.791-05:002017-02-07T23:42:46.791-05:00Bankers, the scourge of the world. Bankers, the scourge of the world. GLHhttps://www.blogger.com/profile/02791463748430739099noreply@blogger.com