Patrick Barron has been a consultant to the banking industry since 1985. He teaches Bank Management Simulation at the Graduate School of Banking, University of Wisconsin, Madison and Austrian Economics at the University of Iowa. He has contributed a weekly essay in the Austrian vein to The Bulletin, Philadelphia since 2006. As president of the Right Approach Group, which offers free market solutions to current economic problem, he has spoken at economic conferences at the EU Parliament offices in Brussels, Belgium and Strasbourg, France.
Greek PM refuses to change course ahead of crucial week of meetings with Eurozone partners
"...Greek Prime Minister Alexis Tsipras...reiterated his plan to increase the minimum wage, halt privatisations, reopen closed public broadcaster ERT and tackle tax evasion."
Increasing the minimum wage will increase unemployment. Halting privatisations will decrease what Murray N. Rothbard calls "private purchasing power remaining" or PPPR; i.e., resources confiscated and squandered by government cannot be used to satisfy the real needs of the market. Reopening public broadcasting will increase government spending still further--thus, reducing PPPR--and will give the government a propaganda outlet. Tackling tax evasion, although probably a worthy goal in a low and equitable tax environment, will further reduce PPPR and drive many Greeks to desperation. In other words, if pursued with vigor, all four of these policies will make matters worse not better.