This little piggy went to market,
This little piggy stayed at home,
This little piggy had roast beef,
This little piggy had none.
And this little piggy went…
“Wee wee wee” all the way home…
One of the most popular nursery rhymes in the world is a good catalyst for meditating about the famous / notorious PIIGS countries of Europe. There were five little piggys, and there are five PIIGS countries. Each of the five little piggys had a quite different circumstance, as does each of the PIIGS countries. Perhaps we can figure out how the PIIGS managed to insert themselves into the financial quicksand pit they share at the moment. A case can be made that the piggy who cried “wee wee wee” is Greece, so the Greeks are under the looking glass first.
In my home town, I am convinced that the Greek-American community comprised a statistical anomaly. All of the students of Greek heritage that I met in school were very smart, many had musical and artistic talent, and at least one I knew was an outstanding athlete. My older sister, five years ahead of me in that same school system, had the same impression of her fellow Greek students. I could have been persuaded that the Greek community in my town defined the upper end of the bell-shaped distribution curve of intelligence. ( I have to admit that at least one of my Greek-heritage acquaintances labeled me a Grecophile.) So, what’s not to like about Greeks—and how in the world did they get into their current predicament?
Similar to blaming the Wright brothers for failing to anticipate harmonic oscillation, flutter and transonic aerodynamic anomalies, we could blame the Greeks for their failure to foresee what Alexis de Tocqueville later observed: “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship”. Surely those smart people could have figured it out in that couple of millenia between Plato and de Tocqueville.
But human nature hasn’t changed much since Plato’s day. Just as we can be enticed by a something-for-nothing scam, so can the Greeks; but it does appear that the Socialist environment in Europe dampens people’s common sense more than elsewhere. So Greece became a model again—a model for “entitlements”; and Greece proceeded to pump up its welfare state at a record-setting pace . Today, Greek workers’ benefits and entitlements are so luxurious that they sound too good to be true.
In Greece, the Social Security systems (yes, systems, plural) provide 90% to 110% of the retiree’s final salary. Health care, as in most of Europe, is “free”. Housing benefits abound, vacation and holiday allowances are staggeringly generous, by U.S. norms. Just to add a little more sweetening, workers receive bonuses at Easter and Christmas; and so on. Needless to say, it took a few years for Greece to pile the benefits up to their current levels—a pace exceeded only by the Obama administration in the U.S. One other complication to Greece’s debt crisis is the enormous number of public sector employees, now approaching a quarter of the total Greek work force (a few percentage points worse than the United States).
From our position today, looking back makes the Greeks appear pretty dense. But we should not forget the context in which this current Greek Tragedy has evolved. Socialism is the norm among European Union countries. Of all the EU countries, only one has gotten serious about getting its fiscal house in order (Sweden, essentially reversing its long Marxian nightmare of over-taxing, over-regulating, overly-promising unsustainable entitlements, and overgrowing government).
In addition to its European family tradition of Socialism, Greece has had an active and aggressive Communist Party for many years (a serious U.S. concern during the Eisenhower administration). In fact, it’s amazing that the Greek Orthodox Church has been able to avoid canonizing Saint Marx and littering the countryside with Marx icons. At this moment one of Greece’s leading Communist politicians is encouraging or demanding that his comrades vote for de Tocqueville’s last sentence in the quote above. EU economists now describe the situation in Greece with adjectives such as “precarious”, “grim”, and even “hopeless”.
Although we can admire all that is good about Greece, and we can empathise with the Greek people, we are not in a position to continue enabling their addiction to “something-for-nothing”. Much as a lot of Americans would like to see the U.S. totally bail out Greece, the U.S. is only a couple of fiscal disaster steps behind the PIIGS. A great many Americans also appear to be addicted to “something-for-nothing”, and the Democratic Socialist Union Party will fight to the death in order to keep all the American slaves in government bondage.
To avoid following Greece into the quicksand, the U. S. must understand the PIIGS lesson and promptly change course, toward economic reality. Continuing to walk, step by step, deeper and deeper into the PIIGS pit while waiting for a superhero doesn’t seem very promising. By the way, have you completed your PIIGS Fan Club membership yet? Join The PIIGS Fan Club Now!
Posted by thedrake01