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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGalbraith: The Greek Revolt Against Bad Economics Threatens European Elites
This is congruent with my view of the situation.
The Greek Revolt Against Bad Economics Threatens European Elites
Lynn Parramore: What's your view of the attitudes of the creditor powers the European Central Bank (ECB), International Monetary Fund (IMF) and European Commission (EC) toward Greece?
Jamie Galbraith: What happened on the 26th of June was that Alexis (Tsipras) came to realize, at long last, that no matter how many concessions he made he wasn't going to get the first one from the creditors. That's something Wolfgang Schäuble had made clear to Yanis (Varoufakis) months before.
But it was hard to persuade the Greek government of this because its members naturally expected, as you would when you're in a negotiation, that if you make a concession the other side will make a concession. That isn't the way this one worked. The Greeks kept making concessions. They'd present a program and the other side would say as you can read in the press oh, no, that's not good enough. Do another one. Then they'd complain that the Greeks were not being serious.
What the creditors meant by that was this: when you come around and agree to what we tell you, then you're serious. Otherwise not. This is the way bad professors treat extremely recalcitrant students. You come in with a paper draft and they say, no, that's not good enough. Do another one.
LP: What does it mean to the rest of the world if Greece capitulates or exits? What's at stake?
JG: What is at stake is a rather heroic rebellion by a very beleaguered people against a doctrine which has been destroying their lives the austerity doctrine and the whole neoliberal project. For the rest of us, what is at stake is whether we have the moral courage and the sense of ethical responsibility to stand up to it.
LP: Is the austerity doctrine which has been widely discredited by economists under serious threat?
JG: It is definitely under threat from an increasingly emboldened political movement across Europe certainly in Spain, certainly in Ireland, probably in Portugal, Italy, and France. So the answer is yes. This is what terrifies the European elites about the Greek situation. What Syriza did was to wipe out and the referendum completed the job the leadership of the previous sort of condominium of governing parties, which were a neoliberal conservative party and a neoliberalized social party. Now what do you find in the rest of Europe? Look at Germany, look at France. You find exactly the same thing. And of course, the elites in those countries fear the same phenomenon. So what we're seeing is an allergic reaction to what they regard as a political threat of the first order.
Lynn Parramore: What's your view of the attitudes of the creditor powers the European Central Bank (ECB), International Monetary Fund (IMF) and European Commission (EC) toward Greece?
Jamie Galbraith: What happened on the 26th of June was that Alexis (Tsipras) came to realize, at long last, that no matter how many concessions he made he wasn't going to get the first one from the creditors. That's something Wolfgang Schäuble had made clear to Yanis (Varoufakis) months before.
But it was hard to persuade the Greek government of this because its members naturally expected, as you would when you're in a negotiation, that if you make a concession the other side will make a concession. That isn't the way this one worked. The Greeks kept making concessions. They'd present a program and the other side would say as you can read in the press oh, no, that's not good enough. Do another one. Then they'd complain that the Greeks were not being serious.
What the creditors meant by that was this: when you come around and agree to what we tell you, then you're serious. Otherwise not. This is the way bad professors treat extremely recalcitrant students. You come in with a paper draft and they say, no, that's not good enough. Do another one.
LP: What does it mean to the rest of the world if Greece capitulates or exits? What's at stake?
JG: What is at stake is a rather heroic rebellion by a very beleaguered people against a doctrine which has been destroying their lives the austerity doctrine and the whole neoliberal project. For the rest of us, what is at stake is whether we have the moral courage and the sense of ethical responsibility to stand up to it.
LP: Is the austerity doctrine which has been widely discredited by economists under serious threat?
JG: It is definitely under threat from an increasingly emboldened political movement across Europe certainly in Spain, certainly in Ireland, probably in Portugal, Italy, and France. So the answer is yes. This is what terrifies the European elites about the Greek situation. What Syriza did was to wipe out and the referendum completed the job the leadership of the previous sort of condominium of governing parties, which were a neoliberal conservative party and a neoliberalized social party. Now what do you find in the rest of Europe? Look at Germany, look at France. You find exactly the same thing. And of course, the elites in those countries fear the same phenomenon. So what we're seeing is an allergic reaction to what they regard as a political threat of the first order.
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Galbraith: The Greek Revolt Against Bad Economics Threatens European Elites (Original Post)
GliderGuider
Jul 2015
OP
PoliticAverse
(26,366 posts)1. What revolt - are they leaving the Euro? n/t
jeff47
(26,549 posts)3. If the Troika doesn't actually negotiate, that will be their only option left.
We'll see if the Troika will accept reality or keep insisting austerity is expansionary.
Octafish
(55,745 posts)2. THAT is the problem.
Now if it hurt the masses who already are hurting, well...that's another problem that Austerity can cure.