Greece and the Bailout

As we will be vacationing in Greece later this year, i have been following the situation in Greece closer than i might otherwise have done.

I think the Euro Banks, International Monetary Fund, and World Bank have it all wrong.

What are the facts as they are known?

Greece is basically bankrupt.
Corruption is rampant.
The guy on the street, from the lowliest street sweeper to the highest of the high, are paid outrageous wages with exorbitant benefits and ridiculous vacation entitlements.
Tax evasions and avoidance are national pastimes.

So what are the financial gurus requiring as part of the bailout?

Rollback of all these high wages, benefits, and vacation entitlements of the working class stiff.
Raising the pensionable retirement age by a few years.
Increasing taxes.
Cutting government services.
And privatisation of many government assets and profitable services.

Let's look a little bit closer at these areas.

The Greek government is owed about 41.1 billion Euros in taxes. Of this amount, 37 billion Euros are owed by just 6,500 individuals and 8,200 companies. A simple average means about 2,500,000 Euros each.

The lowly street sweeper is not likely to be the beneficiary of the corruption but rather the brunt of it in terms of having to pay to obtain even the most basic of government services. And even if he does benefit, it will not add up to the missing 2,500,000 Euros in income taxes owed on average by the rich few.

Furthermore, having to bribe a civil servant to obtain even a simple permit means that tax evasion is on everyone's mind as in, why pay taxes when we have to pay again for the services the taxes are supposed to provide.

The bulk of the tax evaders are probably those best in a position to be the beneficiaries of the corruption.

As for the high wages, benefits, and vacation entitlements, the best way to keep the citizenry quiet and complacent is to bribe them with their own money in the form of these high wages, benefits, and vacation entitlements.

So, what is the real solution?

Deal with the top level corruption and tax evaders. Collect the 37 billion Euros which incidentally, is the same amount the Euro Banks are insisting that private enterprises raise as part of their commitment in bailing out Greece. Seize the assets of those unwilling to pay their outstanding taxes.

Make corruption on the scale seen in Greece a treasonable offence. Seize the assets and jail the offenders.

The total value of rolling back the wages and benefits of the working stiff and collecting their tiny portion of the outstanding taxes is minuscule in comparison to the corruption and greed at the top levels of government and businesses.

But this will not happen because the members of the Euro Banks, International Monetary Fund, and World Bank are the same ones benefiting large from the corruption in Greece and elsewhere in the world. They do not penalise their friends.