Posts tagged with: economic shock therapy

Blog author: jcouretas
posted by on Wednesday, December 15, 2010

Video: Hundreds of protesters clashed with riot police across central Athens on Wednesday, smashing cars and hurling gasoline bombs during a nationwide labour protest against the government’s latest austerity measures. The former Development Minister Costis Hatzidakis was attacked by protesters outside a luxury hotel. He was escorted, bleeding from the scene as his attackers yelled “thieves” at him. Source: Russia Today

In the Greek daily Kathimerini, Alexis Papachelas writes:

There are no easy answers and, to make matters worse, we still have no idea about how the global crisis will affect Europe in early 2011.

The Greek government chose a course of treatment for the economy that is much like shock therapy, meaning that it tried to squeeze as many changes as possible into a short period of time.

If this strategy is successful, the government will have a strong card to play when it has to deal with its European peers and market forces in the case that debt restructuring is offered as a solution. If, however, the strategy fails, the shock therapy may turn into that extra bit of force that breaks the valve on the pressure cooker that is Greek society.

Read Acton Research Director Samuel Gregg’s new essay on Public Discourse titled, “Socialism and Solidarity.”