Greece does battle with creationist economics: can Germany be brought into the 21st Century?

We do live in a very absurd world. I wish articles like these would pay more attention to the role of Finland in this whole farce. Small country, yes, but with a hard line.

Real-World Economics Review Blog

from Dean Baker

Europeans have been amused in recent weeks by the difficulty that Republican presidentialcandidates have with the theory of evolution. But these cognitive problems will only matter if one of these people gets into the White House and still finds himself unable to distinguish myth from reality. By contrast, Europe is already suffering enormous pain because the people setting economic policy prefer morality tales to economic reality.

This is the story of the confrontation between Greece and the leadership of the European Union. The northern European countries, most importantly Germany, insist on punishing Greece as a profligate spender. They insist on massive debt payments from Greece to the European Union and other official creditors to make up for excessive borrowing in prior years.

The current program requires that Greece’s tax revenues exceed non-interest government spending by 4.0 percent of GDP, the equivalent of $720 billion a year…

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