[Marxism] Fwd: Wolfgang Schäuble, the Hero of the Greek Austerity Crisis?

Louis Proyect lnp3 at panix.com
Tue Jul 21 06:32:52 MDT 2015

(When I stated that Schauble was "veering to the left" by supporting 
Grexit, I was busting chops. In this article Dean Baker takes his 
proposal seriously, making it sound like the sort of thing you would 
hear from Alex Callinicos or Michael Roberts.)

There are two major benefits from the Schäuble plan. First, it would put 
Greece in a position to restructure its debt. While there would be many 
battles with creditors over the extent and conditions of any 
write-downs, the immediate outcome would be to free Greece from the 
obligation to run large primary budget surpluses to pay interest on its 
debt. This could provide a substantial boost to its economy as money 
that would be flowing out of the country for debt service could instead 
be used for domestic purposes like sustaining infrastructure and paying 
for health care and pensions.

The other major benefit would be that a lower valued currency would make 
Greek goods and services more competitive internationally. This should 
provide a substantial boost to its net exports, which would lead to 
growth and jobs.


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