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Valve's Economist Yanis Varoufakis Appointed Greece's Finance Minister
eldavojohn writes A turnover in the Greek government resulted from recent snap elections placing SYRIZA (Coalition of the Radical Left) in power — just shy of an outright majority by two seats. Atheist, and youngest Prime Minister in Greek history since 1865, Alexis Tsipras has been appointed the new prime minister and begun taking immediate drastic steps against the recent austerity laws put in place by prior administrations. One such step has been to appoint Valve's economist Yanis Varoufakis to position of Finance Minister of Greece. For the past three years Varoufakis has been working at Steam to analyze and improve the Steam Market but now has the opportunity to improve one of the most troubled economies in the world.
I don't know how to feel about this one...
Finance Minister of Greece ranks pretty high on my list of "you could pay me enough, but it would be A LOT" jobs.
I don't really want to compare Yanis to a gambling murderer, but I am anyways. This sounds a bit too much like John Law getting appointed to fix the French Economy. That turned out great for everyone didn't it. Appointing someone to run your economy who's primary job in economics was to make a bunch of gambling addicts to improve steams revenue doesn't sound like the kind of person who should be fixing an economy. But who knows, maybe he'll do something good and be crowned a genius.
They're already past the "make things worse" stage. That's what austerity brought.
Shit's hitting the fan and that's why the radicals are showing up
Wrong, the austerity measures implemented a dependency on living outside the means of the country, without the ability to devalue their currency in a controlled fashion like Iceland did, this makes recovery not possible. You don't get a man out of debt by lending more money to him and forcing him to accept it while following specific terms on how to make use of it.
Change is certain; progress is not obligatory.
Here's a better link to an article from The Economist: http://www.economist.com/blogs...
AS one country after another on the periphery of the euro zone had to swallow painful reforms and fiscal austerity as the price for their bail-outs between 2010 and 2013, the surprise was that by and large they accepted the medicine without a large-scale populist revolt. But Sunday’s result in the Greek election marks a turning-point because Syriza, the radical-left party that has prevailed at the polls, campaigned on casting aside austerity, backtracking on the reforms and renegotiating the vast debt that Greece owes its European creditors. These policies are unacceptable to the euro-zone countries, especially Germany, that have lent Greece so much money. The outcome of the election could also have wider implications. Why does the Greek result matter?
A clash is impending because the Greeks see their recent history in a very different light from that of the Germans and other Europeans who have bailed them out. From the perspective of Northern creditor nations, Greece was the architect of its own misfortune by mismanaging its public finances on a staggering scale. It has been lent an astonishing amount of money in not just one but two bail-outs, amounting to €246 billion ($275 billion), worth more than the country’s entire economic output. From a Greek perspective, however, the country has suffered a calamitous decline in GDP, which at its low in late 2013 was 27% down on its pre-crisis peak. Harsh spending cuts and tax rises have been imposed again and again as conditions for further economic support. Greeks feel that they have lost control of their country, which is now instead being directed by the hated troika: the European Commission, the IMF and the European Central Bank.
Syriza won on Sunday because Alexis Tsipras, the party's leader, offered a message of hope to a country still in despair, even though the economy is now recovering. But the difficulty with his plan for Greece is that it requires other Europeans to finance it—or to countenance a reversal of reforms they regard as vital for Greece to cope with euro-zone membership. If Mr Tsipras makes good on promises of higher spending and lower taxes then Greece will fail to meet its objective of running a big primary budget surplus (ie, before interest payments), which would make it far harder to get its debt down from 175% of GDP. And if he reverses reforms such as the ones that have brought down wages, then Greece will head back towards the uncompetitive economic mess that, along with budgetary mismanagement, got it into trouble in the first place.
In the negotiations that will now occur between Mr Tsipras and Greece’s creditors, Germany will give little ground. Angela Merkel, too, must pay attention to domestic opinion, which would be hostile to any concessions. The German chancellor also has to reckon with the wider impact of any deal that appeared to reward Syriza in emboldening populist revolts in other countries in the euro area, notably in Spain. For any country to leave the euro will be destabilising because it would break the supposed irrevocability of membership. But if Mr Tsipras were to get his way then the euro area would become a club where borrowers rather than lenders called the shots, which would be unsustainable. That is why Mr Tsipras will, before long, face a difficult choice between backing down on his demands—or presiding over a ruinous Greek exit.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
Japan has more public debt than Greece. But its government only spends about 35% of its GDP.