Aditya says it’s Greeks versus capitalism

And if the Greeks choose it, the rest of us should support them. Their battle – people versus an impossibilist capitalism – is ours too.

All of which is bollocks of course.

The battle is between an idiot statism as represented by the EU ‘n’ the euro and economic freedom. For the capitalist answer to this has always been just cut the sodding debt, impose a haircut.

Because there’s one thing that capitalism (and or free markets, your choice here) does very well and that’s how it deals with failure.

So, this plan failed did it? You’re bust? Investors and creditors have lost their money? Ho hum, well, it happens, so, write down the debts and let’s try again.

Capitalism dealt with Argentina perfectly happily. The rich creditors lost lots of their money, the economy began to grow again. That this solution was not applied in Greece is not a failure of capitalism it’s an absence of it.

6 thoughts on “Aditya says it’s Greeks versus capitalism”

  1. Quite Tim.

    I’ve noticed amongst my radical activist left wing friends and academics I know that in regards to Greece and often in general the ‘failure of capitalism’ they often talk about when applied to specifics is in fact often located at the statist heavy end of it, yet they don’t acknowledgr that or what you’ve written here.

    Im all for forwarding a macro critique of capitalism, but they do have to get it right and appear to know what they are talking about before they condemn it. All this crisis condemns is the previous Greek governments, economy, the EU and the Eurozone.

    Lots of other nations managed to avoid this harsh situation following the crash.

  2. Tim

    You’re smashing your head against a brick wall here – anyone who thinks the EU is capitalist or neoliberal is so stupid they are beyond argument, a description which could easily be applied to Aditya Chakrabortty. They will need to be ignored going forward, ‘anti-austerity marches’ and other distractions aside.

  3. not sure I agree. You could also say that the state is there to protect the interests of capitalists, and that’s part of the story here. This is not a new idea: “a committee for managing the common affairs of the whole bourgeoisie.”

    see end of this:

    You seem to have the idea that capitalism wants as little to do with government as possible, which strikes me as naivety and wishful thinking. Why not use the world “capitalism” to refer to the capitalism we actually have, rather than what you imagine / wish it to be.

    Why do you think the Troika rejected the Greek offer on the grounds that corporate taxes hurt growth but were blithely unconcerned with the impact of the rest of their policy prescriptions on growth?

  4. Bloke in Costa Rica

    So Luis, does the same apply to those people who say the 100% failure rate of socialist countries can be ignored because that wasn’t “true socialism”?

  5. good point, yes you could say Tim clamiing this is nothing like “real capitalism” compares to those who say actually existing socialist countries are not real socialist countries. Personally I think that whilst one should always have an eye on what might be, the other should be firmly on what is. Socialists are usually deluded fools if you ask me.

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