Overregulating Life in Greece
by Steven Rattner
July 15, 2015
http://www.nytimes.com/2015/07/15/opinion/overregulating-life-in-greece.html?comments#permid=15496288
Finally someone in the American economics community has the insight to call out this nonsence of "austerity for austerities sake", and the evil Germans using their economic power to dominate Europe.
I first saw these statistics on relative pension costs and uncollected taxes among Euro countries in a German paper and wondered why people like Paul Krugman choose to ignore these data. Actually the divergence in tax receipts, if you include all taxes, not just value-added, showed that 86% of taxes in Greece go uncollected.
Now the "bad, mean Europeans" are opffering Greece Euro 83 Billion more to help them out - the Greeks actually requested Euro 52 Billion, so the story among the Krugmans of this world is going to be, that Europe "forced" Greece into even more debt to control them even more - with the demand to simply get their pension costs and tax collection in line with other Euro countries.
As a side note, the ranking in the graphic on pension cost and tax collection effectiveness closely correlates to the current fical health of Euro countries. In the future the Euro will require better coordination/controls of fiscal policies among its members, and these statistics seem to show a good place to start.
I first saw these statistics on relative pension costs and uncollected taxes among Euro countries in a German paper and wondered why people like Paul Krugman choose to ignore these data. Actually the divergence in tax receipts, if you include all taxes, not just value-added, showed that 86% of taxes in Greece go uncollected.
Now the "bad, mean Europeans" are opffering Greece Euro 83 Billion more to help them out - the Greeks actually requested Euro 52 Billion, so the story among the Krugmans of this world is going to be, that Europe "forced" Greece into even more debt to control them even more - with the demand to simply get their pension costs and tax collection in line with other Euro countries.
As a side note, the ranking in the graphic on pension cost and tax collection effectiveness closely correlates to the current fical health of Euro countries. In the future the Euro will require better coordination/controls of fiscal policies among its members, and these statistics seem to show a good place to start.
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