Morrison: Greece a case study on the dangers of the welfare state

Scott Morrison, the Minister for Social Services, speaking to the IPA today on the unsustainability of a generous welfare state:

In just one generation Greece has been forced to surrender their economic sovereignty. The source of their troubles can be traced back, amongst other contributing factors, to the election of the Socialist PASOK Government under Andreas Papandreou in 1981… PASOK ruled Greece for 19 of the next 22 years, enshrining the modern Greek age of welfare entitlement.

Today, those who the Greek Socialists claimed would be the beneficiaries of their welfare reforms, have become their victims…

The Greek electorate has been complicit in its demise… The recent plebiscite results indicate the Greek electorate remain complicit, if not deluded. The Greek electorate wanted to believe in free money and they’re not the only ones – welfare without cost – because in their view their welfare measures were right and just and their sense of entitlement was enough. But … the plan must be funded, it must be measured, it must be targeted, it must be delivered by a competent government. It must be sustainable and affordable…

The drachmanomics experience shows you can’t pay off your debts with moral virtue. Creditors prefer cash…

Greece has not been alone in their journey.

Chancellor Merkel regularly reminds Europe that it has 7% of the world’s population, 25% of its GDP and 50% of its social spending and that If the region is to prosper in competition with emerging countries, it cannot continue to be so generous…

Continue reading here.

 

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