Thursday, January 29, 2015

Lack Of Reform, Not Austerity, Doomed Greek Economy

by Alvaro Vargas Llosa

Investor's Business Daily

January 28, 2015

The real Greek tragedy is not that Alexis Tsipras from the radical left-wing Syriza party won that country's recent election, becoming prime minister in the cradle of democracy.

Voters can reverse that mistake when they realize that his policies are doing more harm than good.

The real tragedy is that Greek voters, like other Europeans who are embracing far-right or far-left parties, cast their ballots in response to draconian austerity measures, imposed by the European Union (EU) and International Monetary Fund (IMF), that they equate with free-market capitalism and globalization.

The consequences of this ideological travesty will last much longer than Tsipras' honeymoon and prevent a solution to Greece's six-year-old recession for years to come.

Remember the sequence: After years of mercantilist corruption, crony capitalism and socialist welfare-state policies, a system that the center-right New Democracy party and center-left Pasok party upheld for 40 years, the Greek economy collapsed.


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