is the Greek crisis a failure in capitalism? (low corporate taxes+huge government=crippling deficit)?
By Contributor • Nov 26th, 2010 • Category: Bankruptcy
Question by The Red Star Against Capitalism: is the Greek crisis a failure in capitalism? (low corporate taxes+huge government=crippling deficit)?
first of all, huge government isn’t the domain socialism or communism. it is the domain of both the right and left wings. (capitalism and free market societies can have big government too).
now then…Greece has one of the lowest corporate taxes in Europe. Under Far-right Prime Minister Kostas Karamanlis, the tax b urden went to lower class wage-earners and the middle class, while tax breaks were required for corporations.
fast forward 6 years later, and Greece has a deficit at 13% of their GDP. socialists are rallying against the former far right minister (the socialist prime minister has been in office for a few months) for selling bonds to recap the deficit, that they cannot pay. he also wanted to cut pay in the public sector, without a similar pay cut in the private sector. and now, the taxes on the rich are still not being raised–even though the budget crisis could’ve been averted if only they taxed those rich bastards in the first place.
Now the new direction “change or sink.” By that, he means that the country must turn in a neoliberal direction–that the balance of forces between capital and labor must be tipped towards the benefit of the rich “so that the country can avoid bankruptcy.” so the socialist prime minister is really a capitalist in disguise.
is this the failure of capitalism in action?
Best answer:
Answer by Jonny Derp 2: Electric Boogaloo
No.
What do you think? Answer below!
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Capitalism has already proved it fails in its pure form during the Great Depression.
It’s just an endless chain of bubbles & busts. A couple of people make off with a bunch of money while 95% are screwed.
You have to find the right balance between the extremes of Capitalism & Socialism.
Most other developed countries have picked up on that by now.
Absolutely not. Greece’s public sector accounts for 40% of GDP and it has failed to address a growing deficit. Quite frankly, it looks a whole lot like the road Obama & Company have put the United States on.
Compare and contrast East and West Germany for us in your next thread. That was a very good laboratory for observation.