The crisis in Greece – capitalism vs. human error

by Sami Laine, Pasi Lehtonen, Martti Penttilä, Mikko Raatikainen

Capitalism as an economic ideology does not take into account the margin of human error.

However, major humane mistakes were made in establishing the Euro. The current problems encountering Greece only highlight the irrational logic of the human mind. The EU never drew out a plan on how countries facing economical demise could pull out of the Euro and now finds itself facing issues which should have been solved in advance. ” There are no exit clauses in any of the treaties such as Maastricht or Lisbon, because EMU membership is meant to be irrevocable,” says Kathryn Hopkins, the Guardian’s economic reporter.

A cynic would say that the rioting in the streets of Athens can be traced to an abundance of human error. ”We made mistakes,” admits the Greek Minister of Finance, George Papaconstantinou to CNBC. But who made it possible for the Greek Parliament to make these mistakes? The voters. Democracy and capitalism don’t mix well.

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One Response to “The crisis in Greece – capitalism vs. human error”

  1. peterverweij Says:

    I would take an other opening sentence; relating to the fact that establishing the euro did not create any control mechanism. I don’t understand the mistake issue. Euro treaty had no control mechanism,(give detail on this), but the greecs were not making mistakes, they were cooking the books. And the market will give you the consequences…
    Make a relationship to krugman, quote in your text.

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