Should American Taxpayers Finance another Big Fat Greek Bailout?
by Dan MitchellThe notion that American taxpayers are about to subsidize another Greek bailout (via the Keystone Cops at the IMF) is way beyond economically foolish. It is also morally offensive.
To turn Winston Churchill’s famous quote upside down: “Never have so many paid so much to subsidize such an undeserving few.”
Let’s start with a few facts:
- o Greece’s GDP is roughly equal to the GDP of Maryland.
- o Greece’s population is roughly equal to the population of Ohio.
- o Despite that small size, in both terms of population and economic output, Greece already has received a bailout of about $150 billion (actual amount fluctuates with the exchange rate).
- o Don’t forget the indirect bailout resulting from purchases of Greek government bonds by the European Central Bank.
- o Now Greece is angling for another bailout of about $150 billion.
Is there any possible justification for throwing good money after bad with another bailout. Well, if you’re a politician from Germany or France and your big banks (i.e., some of your major campaign contributors) foolishly bought lots of government bonds from Greece, the answer might be yes. After all, screwing taxpayers to benefit insiders is a longstanding tradition in Europe.







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