Several years ago, an economist put together a little tool to decide what Greece should do about its economic troubles. It was very detailed, with well over a hundred “blocks” that various responses to many questions led to. My approach to the problem was simple: Greece should leave the euro and deal with the suffering that would cause. My thinking wasn’t really that sophisticated. It was just that I felt an exit of Greece was a given and it was better to suffer the exit then rather than suffer for months or years and then suffer the exit.
Paul Krugman’s column this morning is, Mad as Hellas. And from it, I learned that after years of intense suffering, the Greek economy is still very bad and the people seem to have finally had enough. The current Greek government that is committed to austerity is trying to put off an election. According to Krugman, “And, if it fails, the likely winner in that election is Syriza, a party of the left that has demanded a renegotiation of the austerity program, which could lead to a confrontation with Germany and exit from the euro.”
Why would that mean that the Greece would exit the euro? Simply: Germany is filled with a bunch of jerks. I don’t see Germany yielding in this matter. Germany’s economy is doing fine. Germany is certain that if everyone just acted like them, they too would be doing fine. Germany has a century-long record of abusing its power on the rest of Europe. I suppose we should be happy that they no longer have to start a war. But it hardly matters when you can get everyone to do as you want without firing a shot.
The United States’ federal budget is $3.5 trillion. According to Krugman, Greece has been forced to cut its budget and raise taxes at a level that would be equivalent to us doing so to a tune of one trillion dollars per year. We are talking massive austerity. And the results? “Meanwhile, wages in the private sector have plunged. Yet a quarter of the Greek labor force, and half its young, remain unemployed… Meanwhile, the debt situation has if anything gotten worse, with the ratio of public debt to GDP at a record high — mainly because of falling GDP, not rising debt — and with the emergence of a big private debt problem, thanks to deflation and depression.”
So it is just as I thought four years ago: the Greek economy is not doing any better, but the Greek people are doing much worse. And there is no indication that Germany will think anything ought to change. After all, things are going quite well for them. And as with all ideologues, the reasoning will be very clear, “If austerity hasn’t worked so far, you need more austerity!” In other words: the beatings will continue until morale improves.
Krugman also noted that extremist political parties are on the rise in France, Italy, and the United Kingdom. You can only kick people when they are down for so long. And it is just that. It isn’t, as is generally claimed, that these countries need to “take their medicine.” In this case, the “medicine” is like blood letting an anemic patient. Krugman has it exactly right:
Being “very serious” in the world of economics is all about people being “hard” and “tough.” But the pain that must be accepted is never their own pain. We see it here in the United States where our budget deficit supposedly means we must lower taxes on the rich and cut benefits of the retired. But the best example of it is found with the way that Germany treats the rest of Europe. One of the reasons for forming the Eurozone was so that they wouldn’t have anymore wars. But this is just another kind of war and someone has to fight back against Germany.
The story began in 1958, when Eisenhower received a letter from Robert Biggs, a terminally ill World War II veteran. Biggs told the president that he “felt from your recent speeches the feeling of hedging and a little uncertainty.” He added, “We wait for someone to speak for us and back him completely if the statement is made in truth.”
Meanwhile, the only person in the whole world to have been prosecuted in regard to this is
Before President George W Bush left office, a group of conservatives lobbied the White House to grant pardons to the officials who had planned and authorized the United States torture program. My organization, the American Civil Liberties Union, found the proposal repugnant. Along with eight other human rights groups, we sent a letter to Mr Bush arguing that granting pardons would undermine the rule of law and prevent Americans from learning what had been done in their names.
Jonathan Chait wrote an interesting article this morning,
But I have to disagree with Chait on one point. I’m just not sure that things are better for African Americans now. They are certainly different, but that is hardly the same thing. I was looking at some statistics about lynching in America. From 1882 to 1968, 3,446 black people were
Let me put this in personal terms: as an intellectual I present my concerns before an audience or constituency, but this is not just a matter of how I articulate them, but also of what I myself, as someone who is trying to advance the cause of freedom and justice, also represent. I say or write these things because after much reflection they are what I believe; and I also want to persuade others of this view. There is therefore this quite complicated mix between the private and the public worlds, my own history, values, writings and positions as they derive from my experiences, on the one hand, and, on the other hand, how these enter into the social world where people debate and make decisions about war and freedom and justice. There is no such thing as a private intellectual, since the moment you set down words and then publish them you have entered the public world. Nor is there only a public intellectual, someone who exists just as a figurehead or spokesperson or symbol of a cause, movement, or position. There is always the personal inflection and the private sensibility, and those give meaning to what is being said or written. Least of all should an intellectual be there to make his/her audiences feel good: the whole point is to be embarrassing, contrary, even unpleasant.

Simon Wren-Lewis wrote a great article today,
The worst aspect of conservatives’ gripes about classism are the solutions they propose. Never do they suggest that we actually do something to mitigate the extreme imbalance of power between the social orders, because that would change them from compassionate conservatives into dirty commies. The farthest they usually go in this regard is to recommend that we vote for a candidate who shares our values, a guy with whom we can imagine chugging a can of beer while we’re both cleaning our rifles or talking about soybean yield or getting our hair cut in some really authentic small-town barbershop from back before the big-box stores killed small towns.
Robert Reich has an annoying habit of claiming that education really is the ticket up the social ladder. It just isn’t the case. Consider Mark Zuckerberg. He wasn’t some poor kid who networked with the elites at Harvard and clawed his way to the top. Both his parents were highly paid professionals — certainly well inside the upper class. And then Zuckerberg didn’t even graduate. Or what about Daymond John? He had no college education. I realize that these are just single instances, the data on it is shockingly inconsistent. And the question is no longer, “Does a college education raise you up?” It is now, “Does the cost of the education pay for itself over the course of your working life?” On that issue the answer seems to be: probably. That isn’t anything close to what a college education would do for you in the 1970s.