Paul Krugman in Uber and the New Liberal Consensus points out that:“Uber actually brings two things to the taxi market. One is the smartphone revolution… The other is the company whose workers supposedly are free contractors, not employees, exempting the company from most of the regulations designed to protect employees…
…The “new liberal consensus“, argues (based on a lot of evidence) that wages are much less rigidly determined by supply and demand than previously thought, and that public policy can and should nudge employers into paying more. If that’s your policy plan, you really don’t want to see employers undermine it by declaring that they aren’t really employers…promote the use of new technology without prejudicing the interests of workers. But progressives need to work on doing that, and not let themselves get painted as enemies of innovation.”
Notice that Uber got lots of mileage from lying that they are an employer without employees. As technology and innovation advance, the law is left behind, and thus so are the punishments for violating it, or its spirit. We have seen a lot of that in the case of Greece. Lying has been supreme about how and thanks to whom, and most prominently, for whom, money is being created. Sometimes it feels as if we belong to an age where lying is the main industry. Engineering is good, lying, more profitable.
Another day, another economist from Munich lying about Greece, in the New York Times, while quoting (favorably) Goldman Sachs. “Why Greece Should Leave The Eurozone“:
“To compete, Greece needs a strong devaluation — a relative decline of its price level. Trying to lower prices and wages in absolute terms (for example, by slashing wages) would be very difficult, as it would bankrupt many debtors and tenants.
It would arguably be better to inflate prices in the rest of the eurozone…If the rest of the eurozone posts inflation rates of slightly less than 2 percent, as the E.C.B. hopes, Greece would be competitive after a decade or so, provided that its price level stays put…
What about the solution favored by leftists: more money for Greece? No doubt, enormous government spending would bring about a Keynesian stimulus and generate some modest internal growth. However, apart from the fact that this money would have to come from other countries’ taxpayers, this would be counterproductive, as it would prevent the necessary devaluation.”
The question of corrupt economic advice keeps coming back. Dreadful advice keeps on coming: first rescuing the private banks with state money, ruining the state, then austerity, ruining the economy. Now they want to make Greece worthless, because they say it will improve the economy.
By forcing on it a devastating devaluation, do Germans want to buy Greece on the cheap? Often it looks like it. The Greeks own more worthy property than Germans do. This property is valued in Euros. Germans cannot buy enough of it. But they could, if the currency used by Greeks became worthless, which is what many German economists advocate.
Those who want to make Greece worthless say: that would improve the Greek economy. However, the Greek economy depends upon tourism (which is roaring ahead), petroleum imports (which would become immensely expensive if Greece devalued), refined petroleum products (those contracts are in dollars, so would not profit from a devaluation) and shipping (all contracts are in dollars).
Ridiculous ideas are rolled out. Take Finland: it’s in recession, with 10% unemployment, still Finland accuses Greece. But, truly, what Finland needs is the same as what Greece needs: easy money and tons of it. Same observation for the Netherlands. That same “leftist” solution, the one the USA implemented for itself.
Hence why the nefarious advice? Because Europe has many enemies and many economists’ repute depends upon sinking the EU, while Wall Street profits from it.
The advice has been to bleed the patient, until he gets better: that’s austerity. Now the advice is to bury the patient, until it revives, raising from his ashes.
All what Greece needs is an anti-oligarchic revolution. Some in the EU will help achieve it.
And that’s why precisely the hysteria has been so great about sabotaging the EU by kicking Greece out. The powers that be don’t want a successful anti-oligarchic revolution. As all European states are supposed to be in the European Monetary Union, and Greece does not want out, this is the violence one was talking about.