“Special Zones” only for Special People

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Wouldn’t you know it?  According to Reuters, now that Greece is the world’s poster child for fiscal abuse, for fostering a bloated private sector, for unbridled borrowing, and of late, for high unemployment officially hovering around 23%, it is now considering “special economic zones” to encourage economic growth.

Really?  Is that all it takes--an earthshaking financial collapse—to turn the heads of ecclesiastical statists toward a low-regulation, low tax, pro-growth policies in order to attract private investment?

As the world shudders on its way to various debt ceilings, fiscal cliffs, looming government collapses, currency wars, and swelling welfare rolls, the Greeks are taking another look at how a real economy works.  Gee, they didn’t have to go to such extremes; all they had to do was to think outside the cradle-to-grave box that they’ve been buried in the past 60 years…

But here is what Greek Development Minister Costis Hatzidakis is thinking: “We believe these zones will boost the real economy by creating a special regime to attract investment and generate exports.”

It actually looks and sounds pretty easy.  My goodness…who knew?

Classic economics a threat?

The "Special Zones" would offer investors tax breaks and lower regulations to attract private investment.  Athens is jawboning the idea with the European Commission to allow them to move forward, but the big McGoos in Brussels aren’t so hot about private enterprise, private investment-led recoveries, self-sufficiency, and all of that.  Hell, what if it worked—which it would--who in the Eurozone would need them?

Answer: Nobody…well, okay some would still want the Eurozone, but many more would not.  Politically, it would be a nightmare keeping it together.  As it is, in a way, the hardship that the PIIGS face today drives them deeper into the arms—or belly—of the Eurozone.  All the while, the rich countries and the Eurozone authorities absorb the hard assets of the Greeks and other debt-laden PIIGS.

The problem with Greece, and the entire Eurozone, even Germany itself, is that they are wedded to the idea of a “Greater Europe.” This allows for greater economies of scale as well as greater political power.  That’s the nub of it, isn’t it?  Power.  A tight cluster of ultra-powerful statists who run the Eurozone not only fear a self-sufficient Greece, but also fear most what it would also mean—a break up of the Eurozone.

Furthermore, the powers that be in Brussels also wish to co-op the rich and powerful Northern European economies and use them to lift the peripheral economies. At least, that was the plan when the euro came into being in 1999, and is why so much money was loaned to the PIIGS by the likes of Germany and France, without the slightest possibility of it ever being paid back. Today it's just to keep control over everyone, pure and simple.

So what’s the deal with the Greek enterprise zones?  Well, there are complaints, naturally, from other Eurozone countries.  They accuse Greece of seeking a comparative advantage over them with such zone.  Gosh, who would want a country to have a advantage?  Next thing you know, you're buying stuff from them, and them from you.  Can't have that now, can we?

Do you see the mentality at work in the Eurozone?  Everyone knows that the zones would work, but nobody want anyone to have it.  Talk about misery loving company. Rather than set themselves free of their economic mediocrity, the Eurozone mentality is literally a slave to the idea of socialism, even though they know it leads only to ruin. But he Eurozone much more than just economic; it's all about being together…

Eurozone schizoprenia

To be a Eurozonian you have to want to be a part of something so big that it can’t possibly remain in existence for very long.  It’s like staying on the Titanic after the iceberg…

“Captain, we’ve just hit an iceberg. The ship’s going down.”

“Yes, I know; but we’ll all go down together.”

“But Captain, we have enough life boats to save everyone.”

“Ah, but then we won’t all be together, some will row faster than others-which isn't fair--and worst of all, the ship will be empty.  Who wants to be Captain of an empty ship?”

But just to show you how truly schizophrenic their mentality is, the Eurozone financial authorities have imposed large wage reductions and shrunk government work forces in order to make the Greek economy, an economy again…

“Structural reforms such as wage cuts and liberalization of closed-shop professions loom large in an European Union/International Monetary Funds bailout plan to save the country from a chaotic bankruptcy and possible exit from the euro.”

But, the same authorities won’t allow Greece to lower wages in the enterprise zones make them even more attractive to private capital.   Apparently, slashing wages is good enough for the EU guys who want to be paid their money back, but it’s certainly not good enough for Greeks to jump start their economy.

Makes perfect sense, doesn’t it?  God forbid the Greeks attract private capital and actually make something in their economy besides ouzo and gyro sandwiches.  Besides, their debt has already been heavily discounted; they don’t deserve to have special zones of economic activity.

I guess that “special zones” of lower wages, lower taxes, and lower regulation are not for everyone.  Not everyone could handle the results of lower unemployment, money flowing into the region, re-starting the economy, building new factories and other supporting infrastructure.

Who knows where things go from there? Next thing you know, property values would be up, people would be working, and the economy would be functioning again.  It would be a total disaster for the entire Eurozone.

Gotta hand it to those Greeks, though; they got chutzpah for thinking that they can just make things better by themselves.  They didn’t get into the mess their in now by themselves, by Zeus, they had the whole Eurozone with them the entire way.  What makes them think they don’t need it now?

And those are…The Gorrie Details.

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One Comment

1. 

   Surfer dude

   August 28, 2012 at 8:28 pm

   Aloha James! Dont Think the House of ROTHSCHILD'S Meager EURO Investments have anything to do with This do You>? Oh Gosh,PERISH the Thought and The GREEKS et al along with them!!! lol aloha Amigo!

   Reply