A redestribution of wealth created by others, without borrowing, has always a date of end, the Federation of Hellenic Enterprises (SEV) said in its weekly economic bulletin, criticizing over-taxation and over-regulation of the economy and linked these policies with political developments in the country.
“The average household cannot cope without liquidating property assets, or social benefits. In any case, saving and creating wealth are a distant dream for a very large part of the population and therefore the current status quo is not sustainable since savings will end someday,” the bulletin noted.
SEV presented an analysis by Rafael Di Tella and Robert Mac Culloch and noted that in poor countries there is a flourishing of limitation in business activity and state intervention in the economy, along with a dominance of left policy wording in the analysis of economic issues. In periods of increased corruption, there is a sense of rage among voters and a turn of voters towards extreme political parties. The theory over developments in poor countries seems to be valid also in Greece, particularly after the rise in poverty brought by a prolonged recession during the fiscal adjustment period of memorandums. The Greek population, largely, expresses its rage over what happens in the country, the report said, adding that far right parties are largely capitalizing from this crisis.
“The fact that the current government is a coalition of left and right parties and the fact that the third largest political party in Greek Parliament is considered by other parties to be outside the democratic limits at the far right of political spectre, offers strong indications over the conclusion of analysis, particularly if one considers that Greece has the characteristics of an advanced-rich country and of a country with a severe shortfall in the operation of the state, of institutions and market function,” SEV said in the report.