How Syriza crashed Greece.
Consider a single-currency area, like the UK. There are bits of it that are doing well. London and the South-East for example, that subsidises the rest from its excess taxation over expenditure. Only London and the South Eastern regions are net contributors to the UK treasury, but it is barely questioned there that it is reasonable for taxes levied in Reading be used to build roads in the Rhonda or Rothesay. Thus the Welsh for example are compensated for having an interest rate not quite suitable for their economy, as interest rates are set for the economic centre of Gravity, which in the UK probably lies somewhere around Oxford.
All the pointless yes/no referendum on the terms of the bail-out did was make a Euro exit, something Greeks apparently don’t want, much more likely. As it happens, Alexis Tsipras, after sacking Varoufakis, looks like a man who’s about to capitulate completely. It would’ve been better had he done so much, much earlier, and not caused such a catastrophe for the ordinary Greek citizens.
This crisis is ultimately the fault of Generations of Greek governments, especially the ones who conspired to get Greece into the Euro by all means fair and foul. It’s the fault of the designers of the Euro who ignored all economic advice and wanted Greece in for silly, romantic reasons: Hellas is mythologised as the birthplace of a European idea of democracy. But the current acute crisis was not inevitable. And the blame for that is the hard-left morons of Syriza and the Greek people who voted for them.
“Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” HL Mencken
If you elect the hard-left, you get a financial crisis. Every. Single. Time. Basically because capital is faster-moving than the people who want to confiscate it. Greece was warned. They did it anyway. The only thing people like Syriza and their supporters are any good at is shifting blame onto anyone but themselves.