To some economists, Greece's situation is so dire that default is inevitable, though it may be a few years away. The required austerity would be too punishing, says Desmond Lachman of the American Enterprise Institute. Greece would need spending cuts and tax increases equal to 10 percent of GDP, he says. The resulting savage recession would worsen existing unemployment, already about 10 percent.The Europeans are so compassionate, aren't they? Much more so than we greedy, capitalist, social Darwinist Americans.
Monday, February 22, 2010
A Bit More on Greece
Robert Samuelson lays into the Greek debt problem with his usual clarity. Included in his article is this bit.