This Yard Shows What's Wrong In Greece
This yard in Athens saw an auction every month, selling cars confiscated from drug dealers or tax dodges. Now the state agency has been shut down. Half of the workforce is still there, moved to the books of a government ministry. While the costs run on, there is no more income: Paralyzed, the unit has seen just one car auction this year. It is a snapshot of Greece’s woes, distilled down to impound level.
Details from the story, pieced together by Reuters from current and former employees and official records, “illustrate some of the hurdles Prime Minister Antonis Samaras faces to his goal of saving up to 2 billion euros by 2015 through scrapping some of the thousand or so similar agencies in the hope of persuading international lenders he can steer the budget towards balance.”
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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What's happening to Greece is sad but deserved. Unrestrained government will eventually destroy any nation. They should exit the euro and return to being the low-cost vacation destination for Northern Europe.
Yes, you have to read the Reuter's article. This scrap yard is an example of institutions that refuse to die. Before anybody blames the Greeks, I'd like to remind of two examples: - Ethanol from corn - Mortgage interest tax breaks Both of which are nearly universally recognized by economists as being bad for the American economy. Yet they are now deeply entrenched in political life. The Greeks duly deserve the consequences of their actions, but it's best to see them as an accelerated test case rather than as a morality story. After all, the Swedes can make social institutions work...
Is the yellow car bottom left a 914? Dang me want! Can I bid in yogurt?
My take from this article: sticky wages are a real thing and nobody ever consciously argues against their self interest.