Greece. Hope?

“Evangelia Koskina just received her first pay increase in six years, but she worries that it could be bad news for the café where she works.

“Greece, like fellow euro member Spain, decided this year to sharply increase the minimum wage, despite the legacy of high unemployment left by Europe’s long debt crisis. In both countries, left-leaning governments are betting—against economic orthodoxy—that such increases will be good for growth and employment, as well as for their voter support.”

This story comes from The Wall Street Journal, written by Nektaria Stamouli, herself a Greek writing for the Journal. The title of her article, “Greece, Spain Raise Minimum Wage Despite High Unemployment,” the word “despite” the operative word. Quoting Evangelica Koskina, “But I know that my boss can hardly afford the rise for me and my three colleagues,” she said. “He will have to raise prices for the first time in years to offset part of the loss.”

Jake Novak had this commentary on MSBNC, “Make no mistake, the classic weaknesses of socialism are playing out in as clear a way as you can possibly see them in Greece right now. Here they are: Greece ran out of other people’s money. Greece’s politicians made sweeping pension and benefit promises they could not keep. Greece expected to live in a fashion greater than the wealth it produced, etc.”

What’s the problem? Socialism promises everything free. Citizens then expect everything free. The problem is nothing is free. Oh, don’t you know that? If we took all the money out of the economy, well, there would be no products on the shelves, no food, no transportation vehicles, not even bicycles, nothing, not even the building built to house all that, including the house where you live. “Yes, there would,” you retort. You’re right, before money barter was how we got things. Not really an easy way to live and extremely hard to have gains in one’s life.

The myth that economists want to believe, and want us to believe, “Higher salaries fuel greater spending, which can have a positive impact in the economy and lead to more jobs.” President Obama told us that going into greater debt would bring prosperity. Sometimes in small doses that works, but not in big doses which he gave us and we didn’t see a slowdown in debt until President Trump who reversed economic policies that only caused debt. We’re still going into debt, just not as fast, and our economy is growing for the first time in years.

Greece for decades has been in serious trouble, even time of great riots, not because the government was cutting off the dole but wanted to slow down the debt because money had run out to make everything free. The riots were to stop that decrease. The people wanted what they had and even more.

I wrote before what happened in Seattle when they raised the minimum wage, workers lost their jobs, others had their times cut because even raising prices on goods couldn’t meet the wage demands. What do you think will happen in Greece where “despite” finds already record unemployment? Do you believe the promise that adding to their wages will cause them to spend more increasing the money in the whole economy and everyone will see gain? Really? What really will happen is more will go into unemployment. How do I know? History. You might want to read it sometime.

If you want to read the full article you can go HERE.