Posts Tagged ‘government’

By Con George-Kotzabasis September 23, 2016

My short reply to a political theorist of the Jurgen Habermas School of Critical Theory

It is rather surprising to see a votary of Jurgen Habermas in using an analytic blunted tool that leads to the false inference that malevolent Europeans wilfully imposed upon Greece austerity measures to punish it. The truth is, that these measures were saddled upon Greece as a result of a consumer’s binge and an exuberance of public spending, fuelled, by a profusion of borrowed funds which inevitably pushed Greece into the quagmire of bankruptcy. Austerity therefore and the economic structural changes imposed on the country were a remedy, not a penalty, for the self-inflicted ills that past government policies, mainly of Pasok, engendered.

My question is, why you have not mentioned anything of the pledges, that Kyriakos Mitsotakis had made in his speech at the Exhibition of Thessalonica last Saturday, with their great potential to pull Greece out of its long economic crisis. In my opinion, a government, under the strong and astute leadership of Mitsotakis, will pull Greece out of its immiseration—as the Samaras government was close in achieving. An immiseration that the totally inept Tsipras government is exacerbating, with its historically obsolete neo-Marxist fixations and panaceas.

By Con George-Kotzabasis

Breathing democratic freedom is neither easy nor free; it entails both rights and obligations and most importantly knowledge of current fundamental issues. But in most democracies their constituents tend to uphold and demand more their rights than their obligations, and more deplorably, a sizable number of them exercise their rights in a state of ignorance. This imbalance, however, between rights and obligations, as well as lack of knowledge of the real issues, puts in jeopardy the functioning of a politically just and economically productive democracy, and indeed endangers its existence as a form of government.

Moreover, it makes its voters who are uninformed of the points at issue captive to populist slogans and to that everlasting traducer of democracy, identified by Aristotle, demagogy, that appeals to the hopes and fears of the electors and by propagandistic lies and false promises opens the doors of power to demagogues. This is exemplified by two recent political events in our times: Alexis Tsipras and his party of Syriza winning the elections in Greece on a wave of populism and unprecedented lies and false promises in the political history of the country, and of the plebiscite of the UK, whose two leaders of Brexit, Boris Johnson and Nigel Farage, with a farrago of lies and dire fictions were able to hoodwink a major part of the populace to vote for the exit of Britain from the European Union. On a smaller scale this also has happened in the Australian elections, when the Labor Party by its scare campaign that the Liberal Coalition would privatize Medicare, succeeded in convincing a large part of the electorate of this fictitious threat with the result of Liberals losing so many seats that brought the country on the edge of a hang parliament.

How can one remedy the weaknesses of democracy and protect its constituents from becoming victims to populism and to demagogy with catastrophic results to the well-being of society and to its continued economic prosperity? Some people believe that the answer lies in bringing cultural and ethical changes among the people that would make them immune to this toxic virus of populist-demagogy; and thus leading gradually to the cashiering and inexorable dismissal of all demagogic and populist leaders from the domain of politics. The difficulty and danger of such a solution however is that cultural change is a slow process and during its gestation and vicissitudes in a long run may in the meantime unhinge democracy from its door of freedom, by the actions of feckless, inept, and irresponsible politicians, and incarcerate it within the dungeon of dictatorship. A safer and faster solution would be to enact radical changes to the electoral voting system by suspending in certain circumstances temporarily parts of the electorate from voting.

On what principle could one suggest such an unequal voting system that would discriminate so deliberately between social groups in the ambience of democracy, and which group would be the unequal part in the democratic process? The guiding principle of the first part of the question must explicitly aim to the continued viability and stability of a democratic system, in the context of which, the economic well-being of society depends and guarantees the further expansion of wealth that renders to the people a wide choice where to employ their talents and skills that would push their living standard onto higher plateaus and make their lives congenial to their desires. The second part, i.e., the social group that would be unequally treated, would be identified as that part that depends on welfare for its living and as a ‘debtor’ client of the government easily succumbs to populist slogans and rabble rousing; also, due to its low educational level and lack of interest in important matters, it deprives it from having adequate knowledge of the issues involved and hence is completely unqualified to make a sober judgment on these issues. It is mainly this social group that brings to power demagogues and millenarian ideologues that imperil the stability of the polity and its economic system. And, indeed, ironically pits this same social group into absolute poverty, and in turn destabilizes democracy itself, as it has happened with the political rise of Hugo Chavez and Nicolas Maduro in Venezuela; where its people after a contrived false prosperity are presently hunting dogs and cats to feed themselves. The same has happened with the Marxist Alexis Tsipras in Greece, where the pauperization of many of its ordinary people is exacerbated every day and has reached unprecedented high levels under his totally inept, ideologically barren and irresponsible government.

The enactment of this radical legislation would specifically suspend from the right to vote any person who had been on social welfare or unemployed for more than a year, and only with his/her ceasing on being on welfare or unemployed his/her right to vote would be restored. Such legislation would not only strengthen and secure the viability of democracy and the prosperity of its economic system, but would also deprive populist demagogues and political parties of a constituency upon whose existence they depend. Moreover, it would substantially reduce the spending of the welfare state and make it less precarious to the fiscal policy of the state and hence to the well-being of the country. This radical enactment takes a leaf from the cradle of democracy in classical Greece, Athenian democracy. The latter disenfranchised and suspended from voting citizens who had failed to pay a debt to the polis. Likewise, in a modern democracy people who were in debt for their living to the government, that is on welfare, would be suspended from casting a vote.

Needless to say, such a radical proposal, to occur in the ambit of the ‘spoils’ of the welfare state that has spoiled at least two generations of people by our carefree and stand at ease democracy, will not be easy to implement as it will rouse all the wrath and opposition of the ‘progressive’ bien pensants and the ‘good fellows’ of the dole. It will require extraordinarily strong and sagacious political leadership that will unite parliamentary opposition parties into a gigantic wave that relentlessly will sweep away this ‘progressivist’ praetorian guard of the human rights, without responsibilities, of the dole takers, and throw this defiance of the sanctimonious goody-goodies into the dust bin of history.

I rest on my oars: Your turn now



By Con George-Kotzabasis

The following is a very brief reply to professor of economics Kostas Lapavitsas, and former member of Parliament with the Party of Syriza, to his thesis, that Greece can achieve its national sovereignty only by going back to its own currency, i.e., the drachma, delivered at the Ithacan House, Melbourne, on April 15, 2016. The three first paragraphs were omitted from my response as I assumed regrettably wrongly, that the time allotted to the questioners at the meeting would be too short and hence I did not include them.

 Professor Lapavitsas, allow me to make a short comment before I come to my question, as at the start I want to point out what I believe to be the roots of your erroneous proposition.  

Dialectical materialism even in its modern reincarnation of neo-Marxism, which you espouse, is a hotbed of gross errata, not to say terata (monsters), and hence a fallacious doctrine.

Yet the ghost in the machine of Marxism, despite its irreparable breakdown, continues to churn-out apparitional panaceas for the ills of global capitalism. One such quack panacea is your own proposition.

My question is: Show us one country in the world hit by absolute poverty, which, your implied return to the drachma entails, that by adopting your proposal has achieved national sovereignty and kept it; If you cannot show us such a country, then your proposal is a mirage, a will-o’-the-wisp, an occult fancy.

But what is more worrisome is that you are asking the Greek people, after the botched Tsipras-Varoufakis experiment, to be also the guineapigs to your own theoretical experiment which has hardly better odds of success than the Varoufakian one.

National sovereignty is the result of prosperity not of poverty.


By Con George-Kotzabasis–January 02, 2015

Not only the ideologically antiquated and totally irresponsible and hasty announcements of the ministers of the new government, that led to the collapse of the Greek stock exchange and the stratospheric rise of interest rates, but also their body language, as shown in their performance before TV cameras, exposed with ridicule their witless incompetence. The Minister of State, Nikos Pappas, interviewed on Mega TV, was trying in despair to evade and not to answer the questions of the two interviewers and to cover the poverty of his arguments behind endless contrived smiles.

More gravely, but also more comically, the Minister of Finance Yanis Varoufakis, in the press conference held in Athens last Friday with the head of the European Union (EU) Jeroen Dijssebloem, with tongue-in-cheek and with supercilious righteousness was elaborating with complacent fabricated smiles the ‘perfectly remedial’ counter proposals of the Tsipras Government that would end the crisis to the presumably destructive austerity program of the EU that according to the government was exacerbating it. A program however that aimed, and apparently was succeeding, as indeed did in Ireland and Portugal, in pulling Greece out of the crisis, as recent economic statistics were indicating and serious international commentators were averring. Varoufakis in his last answer to the question of a journalist, in a bravura theatrical performance, described the Troika, the representatives of the EU, the IMF, and the European Central Bank, as being “rotten in its foundations” and the Greek Government would not negotiate with it but only directly with the heads of these three institutions. Dijssebloem sitting next to the Greek minister listening to the translation from Greek to English had a look on his face as if he couldn’t believe his ears. Varoufakis on the other hand had lost all his pompous confidence and showed in his movements and facial expression that he was unsure whether he had said the right thing or not. Totally riveted in his self-doubt and diffidence he seemed like a little child that had lost its way. But the crown of thorns that was placed by Dijssebloem on the head of Varoufakis came when the latter proferred his hand to the former and receiving a contemptuous cold handshake and hearing in bafflement at the same time the head of the EU whispering to him that what he said “was a big mistake.” At the end of this grandiloquent thespian performance by the minister of finance, just before the curtains fell, Varoufakis’ body language showed the depth of his confusion and perplexity and his attempt to hide them behind contrived artificial smiles.

It is by such stuff and political buffoonery that the Tsipras Government will remedy all the ills that the ‘evil’ Troika brought to Greece. This government of a medley of Marxists, socialists, and anarcho-syndicalists posit a great danger to the country as it plans to implement the by now defunct nostrums of its ideology, such as the expansion of the public sector, the nationalization of banks, airlines, ports, and electric and water services, the unbridled extension of the State, a highly regulated business sector, hence, replanting all the poisonous seeds into the soil of Greece that brought a blighted crop of economic bankruptcy.

As to Syrizas’ stand toward to the EU and the IMF, it will either stiffen it and thus lead the country to tactless insolvency and back to the drachma, or it will blink before the sharp sighted Europeans and will be forced to renege, and reverse, all the bombastic promises it made to the people before the elections. Indeed, Syriza will pour so much water in its wine and make it so tasteless that will turn all the people, who so frivolously believed its false promises and lies and voted for it, into teetotallers.

When Syrizas’ charge of the light brigade against the European Union, ‘armoured’ with its chimerical infeasible proposals will be made ‘mincemeat’ by the descendants of the Knights of the North, the romantic riders of Syrizas’ leadership will be compelled to dismount their wistful ideological hobbyhorses for the sake of holding on to power. But the latter also will be an illusion. As the Tsipras Government has failed to convince the EU of the correctness and feasibility of its economic proposals, likewise it will fail to have the support of the Greek people for policies, which preordain, as the collapse of communism, the destruction of Greece.

Government intervention always wills the good and works the bad.

By Con George-Kotzabasis

The European Union’s sovereign debt crisis was neither an act of fate nor an act of a free self-dependent man but an act of deluded ideology whose sails were blown by the long-lasting winds of government dirigisme, i.e., intervention, and welfare dependency. Once again it was the work, the social engineering, of the bien pensants in the form of a state directory of planning that would put a floor of security for the masses and protect them from falling into abject economic privation that was always, according to their thinking, the omnipresent and inevitable result of the unjust, harsh, and unequal regime of the capitalist competitive free market. The trouble was that this floor was made out of straw and at the first jump of an economic crisis–whose seeds were planted by government intervention,  loose monetary policy and low interest rates–would open a gaping hole through which this security would disappear and drown in a massive pool of unemployment and poverty.

The Eurozone’s one dimensional foundation of monetary union without banking and fiscal union could not sustain the European edifice in the long run with the differentiating regime of taxes, social benefits, and pensions that existed among its constituent states. The proliferation and prodigality of unsustainable Entitlement Economies, which have been the characteristics of the welfare states of Europe especially in the south, could not have been continued without cracking the economic underpinnings of the Eurozone. Also, the European Central Bank’s enabling of low risk premiums on interest rates of government debt, encouraged Greece, Portugal, Spain, Italy, and Ireland to go on an orgy of borrowing and overspending. The inevitable outcome was a stampede of budget deficits that were unsustainable and the eventual loss of all credibility in the financial markets that the afflicted States would be able to pay back their debts and thus the shutting out of the latter from the global financial lending pool.

Since no private person would hazard to lend money to states lassoed in sovereign debt the only alternative left was for the richest countries in the Eurozone, such as Germany, to become the lenders and continue to finance the former for their economic survival. But such help would be given under very severe terms encapsulated in strict Memoranda to the receiving countries with the stipulation that the latter would adopt and implement stringent austerity measures that would decrease substantially government expenditure, would restructure and reform their economies making them more competitive, and privatizing public enterprises, whose inefficiency and lack of a diligent working ethos can only be sustained by a continuous expensive staple of government subsidies.

These austerity measures, however, whose formulators have been the European Commission, the European Central Bank, and the International Monetary Fund, the so called Troika, are forcefully rejected by the people of those countries who for decades have been inured to the social and economic comforts and benefits engendered by the reckless spending of their governments, and are refusing to accept any cuts to these benefits even when some are aware that the latter can no longer be provided since the governments’ coffers are empty and the convenience of funding these benefits by borrowing, as they have done in the past, is no longer available due to their nation’s sovereign debt. Moreover, these austerity measures initially had not being complemented with policies of economic development and thus led to the worsening of the economic conditions of those countries that adopted them, such as Greece, leading to unprecedented massive unemployment by the closure of large and small business enterprises and to the smashing of the middle class which is the cornerstone of free societies.

This situation is dangerously engendering the fragmentation of social cohesion in those countries and giving rise to political parties of the extreme right and left, coming out of the foam of waves of violent demonstrations that imminently threaten democracy. A latest illustration of this danger are the attacks by petrol bombs and other incendiary devices by hooded youths of anarchists and extreme leftists in Greece against the homes of outspoken journalists, offices of the governing coalition of New Democracy, Pasok, and the Democratic Left, and the burning of Bank’s ATMs. And of particular significance are the attacks on journalists, which are a blatant violation of free speech and a sinister attempt to intimidate them from expressing their opinion about events and criticizing politicians of Syriza, the official opposition, of whom obviously the fire carrying mobs are its ardent supporters.

This will be the tragic legacy of European big government and its ill-considered, indeed, destructive intervention in the processes of the free market that for at least two centuries have delivered prosperity and an unprecedented increase in the standard of living of the masses; as the socialist politicians from Francois Mitterand to Jaques Delors–the architects and enforcers of the European Monetary Union that forced Germany to succumb and pay the price of the unity of west and east Germany as demanded by France–and their present disciples of etatisme are in the process of killing the goose that laid the golden egg, i.e., the unimpeded free market, and by doing so unconsciously and unwillingly are generating and  unleashing the brutal forces of fascism and leftist directorates of totalitarianism on the landscape of Europe.

To avoid this slide to the hell of totalitarianism only the rise of statesmen who “can act beneath heaven as if they were placed above it” is consummated. The fiscal and balance of payments crisis can only be remedied by substantial cuts in government spending and the euthanasia of big government, and by the privatization of debt ridden public enterprises–that are the last strongholds of obtuse and doctrinaire unions– and by the freeing of private enterprise to pursue profit by competition and entrepreneurial creativity and dynamism, respectively. These ‘bitter’ remedies can only be administered by statesmen of the calibre of Lee Kuan Yew and Antonis Samaras. The latter, indeed, might not only be the progenitor of the Greek Renaissance but also the paradigmatic leader of other European politicians to imitate for their own European Renaissance. The Newtonian apple that will stop the European ‘discord’ that currently threatens the demise of the EU will fall to the gravitational force of such statesmanship.

Hic Rhodus hic salta