My Lengthy Greek Post Script

A week ago tonight, Ariadne and I were in Constantinople and visited Ayia Sophia Cathedral. Of course, this morning I attended church in St. Sophia Cathedral in Washington. Two Sundays in a row at an Ayia Sophia is pretty good.

Church this morning was nice, but the reminder of the other Ayia Sophia made me wish I was still on vacation. As did the folks at coffee hour who asked me to reflect on our trip, especially on being in Greece during the crisis.

As you recall from previous blog posts, even amidst the crisis Greece was fantastic. I continue to wonder if that sentiment is me being myopic, or a manifestation of the Greek spirit?  It's likely both, but more so the later. As one fellow Bank of Pireas queue member said in Kyparissia, 'to be Greek is to put up with hardship and challenges; we've done it before and we'll do it now.'  Despite 25 percent unemployment and 50 percent for young people, closed banks, billions in debts and acrimonious relationships with countries they are literally bound to and allied with, Greeks and Greece endure but also hopefully thrive.

Thrive is the key word. Greece and their partners came to a deal as we were leaving Athens, and a week later the Parliament approved it despite some violent protests in Syntagma Square (according to the Greek press that was a mild violent protest in comparison to others, and there were no major injuries). The protests weren't that significant actually. What is significant is that the Parliament approved an austerity package that just a week earlier had been rejected by the 62 percent of Greek voters.

Unpopular is one thing. If they were solutions with a proven track record in a country like Greece, and that will help Greece thrive, who cares if they are unpopular? The problem is austerity never works, at least if your goal is economic growth. The simple summary is in the U.S., President Obama and Democratic Congresses rejected austerity, increased spending and the U.S. economy grew and unemployment is now down to 5.3 percent. Europe led by Germany did the opposite and the entire continent's economy (save Deutschland and the U.K., where they DON'T use the euro) is stagnant at best with very high unemployment rates in most eurozone member countries.

But they did bail out the German and French banks who lent Greece the money.  So at least the Germans and the banks are happy!

Unfortunately, Greek Prime Minister Alexis Tsipras and theh Greek Parliament had to agree to the latest austerity deal put forth by Europe. They needed the money to open their banks and thus allow their citizens to have at least some level of financial certainty.

Another factor behind the ratification of the deal is that Greeks want to stay in the eurozone, for a number of reasons. Politically, Greeks believe in a united Europe. Economically, they hope that one day soon Europe (not just China or Russia) will start investing in the Hellenic state and spur actual growth. Finally, and egotistically, it bothers Greeks that their nation, a sophisticated, modern (far from perfect) democratic state that gave the world the word for and concept of Europe would not be in the eurozone while lessor countries like Bulgaria, Latvia or Romania would.

Though austerity is terrible with a track record of being terrible, some of the reforms foisted on Greece are necessary. Trimming the size of the Greek government bureaucracy is overdue; the cronyism in hiring, and the corruption that comes along with it, has to end. Increasing the retirement age to 65 makes sense (though the deal with Europe increases it to 67), and privatizing some enterprises and increasing competition does, too.

Of course, though I'm not an expert I have two ideas of my own. If you go to Greece you'll notice two things during your stay.  One, everyone is friendly and seems to get along great with everyone - their neighbors, strangers, tourists, etc.  Filotimo, the Greek love of honor, is alive and well. Two, there is wifi all over Greece.  Ask Ariadne; the wifi situation in Greece is remarkably good (except in our χωριό: that's one reason to go to Spilia of course).

I believe those two strengths could be used to help Greece.

If I could have my dream job right now, it would be to raise a few million dollars and help advance or deepen civil society in Greece. The filotimo is there; I think Greeks would want to work with their fellow Greeks. But civil society, do it yourself/punk rock, citizens groups -  everything from Habitat for Humanity to the Sierra Club to the Junior League to Alcoholics Anonymous - are not as strong as they could be or need to be in a democracy.  Too often Greeks only look to their political parties for any kind of civic activity, which of course feeds into the cronyism and corruption. Again, the filotimo is there. Greece just needs more citizens groups to help fully utilize all that love of honor.

I could be completely wrong about civil society - though I know they do not have a Sierra Club that organizes hikes, happy hours, and grassroots lobby days in the capital. But I know for a fact that one thing Greece needs is more cash registers.  That's where wifi comes in.

Here in the U.S., where the hipster start-up economy is everywhere, iPad's and iPhone's often act as cash registers.  When I go to a food truck or the coffee shop near my office I use a debit card to pay, a tattooed cashier swipes it on their iPhone or iPad with a little attachment, and they email me the receipt.

Ah, the receipt.  It includes your order plus that magic wand, your sales tax. Greeks, both individuals and businesses, are notorious for not paying their taxes. And the Greek state is broke as a result of too many obligations and not enough tax revenue.

In at least a third of the shops and restaurants we patronized in Greece they did not have a cash register. Instead, merchants or waiters made change in old fashioned lock boxes, envelopes, fanny packs, or in apron pockets.  And those stores did not give out receipts.

Since there is so much wifi in Greece, why don't Greek banks emulate our start ups/hipsters and give each of their commercial customers an iPad? That way every business in Greece will have an on-line cash register. Greek citizens already pay many of their bills via ATMs and kiosks so the card culture exists. Greek banks can complete the deal by making sure that every citizen in the motherland has a debit or ATM card or better yet a credit card. A majority of Greeks sstill do not have credit cards.

It was shocking to see how many businesses in Greece appear to be off the grid and not tied electronically to their bank via a cash register. I have no idea if any of these off-line business pay any taxes but the safe money is they are paying way less of what they owe, if they pay taxes at all.  Making sure each business is online with a cash register that takes ATM or credit cards, linked to a bank, should increase tax revenue significantly thus helping the Greek state pay it debts and fulfill it's financial obligations and responsibilities.

Best of all, both of these ideas should be doable thanks to a very educated and motivated Greek populace.  More than 36 percent of Greeks have a college degrees, a higher percentage than here in the U.S.  Greeks are educated but they need opportunities to use those smarts.  A robust civil society and entrepreneurialism, aided by a electronically linked iPad cash register, should help.

Thanks for reading this lengthy post.  Let me know, particularly if you are in Greece, if any of this makes sense! Τα λεμε!

Witnessing History

As Ariadne and I prepare for our trip to Greece, this weekend provides an interesting hinge moment for both my two nations.  The short and accurate take on things is America continues to get better, towards a more perfect union, while things in Greece are somehow actually getting worse.

And that phrase from the Constitution is a succinct reminder why America is America and Greece is Greece.

The legalization of gay rights in all 50 states, a lightening bolt of civil rights from the Supreme Court, is another example of what makes America America: citizens organizing and striving for their rights in a democracy, and believing they can win because of our democratic institutions.  They did, and they won at the highest court in the land.

Greeks, on the other hand, have neither the belief that their democracy works nor that their institutions are just or that they can win.  There was hope that PM Alexis Tsipras would be a little different but he seems to lack political skills and has completely overplayed his 'hand.' As soon as he took office he started to negotiate via blustery press releases and press conferences. Instead of saying, 'look, I know we messed up but the big question is what does Europe do with Greece now'  Tsipras has done the opposite for 4 months. That attitude seems to have played into the hands of Eurozone hardliners in Germany who obviously have no sympathy for the Syriza government.

But Europe should have sympathy for the Greek people.  But they don't.

I imagine the only solution is for President Obama or Treasury Secretary Lew to call German PM Angela Merkel and say "Cut Greece some slack. Your banks have been reimbursed and there is no reason to be putative. After all, Germany should remember what happens when you rob a nation of it's dignity and ruin it's politics. Bottom line: the US does not want a NATO ally being driven out of the Eurozone and into the arms of rogue like Putin or China."

Hopefully that will happen. And in turn Greek voters will demand institutions that serve the public good and the Greek political class will show some patriotism, pay their taxes and stop stashing their money in Switzerland (like Nazis, climate change-loving sheiks and other ne'er do wells).

And Ari and I will have a front row seat. We will be in Thessaoloniki on June 30, the day Greece may default, and in my mom's hometown village on July 5, the day Tsipras wants a referendum on the Eurozone deal.

I'll try to blog as often as possible, looking back at a country that continues to strive to be more perfect while typing from hotels in a nation just trying to survive.

A few more notes:

• I'll never understand the opposition to gay rights or gay anything.  Until it's mandatory gay marriage, what is there to get fired up about? The small-minded opponents of gay rights often say that that community is outside the mainstream, but that's exactly the opposite.  In my lifetime gays have only asked for mainstream American rights: join the Boy Scouts; openly serve in the Armed Forces; get married.  Who are these weirdos?
• As I blogged before, Greece needs to be more like America. Instead of looking towards Russia or China what Tsipras should really do, if Greece is forced to leave the Eurozone and into a Grexit with drachmas, is ask for a TPP-style trade pact with the US.  It could be a play at regional stability in the shaky, ISIS-haunted eastern Mediterranean that links the economies of Greece, Turkey, Israel, Lebanon, Jordan and other countries that are democracies. Greek olive oil could completely dominate the US market! I'm not an economist but seems like a good idea, right?

The Senate as a solution?

One of the indignities of living in DC is that we have no representation in Congress yet states that are barely inhabited such as Rhode Island, Alaska, Wyoming, Vermont, etc. not only have that but also TWO Senators.

Though DC does not have the representation it deserves, one has to applaud the Founding Fathers for designing a legislative body that balances the interests of large and small, rich and poor, states. 

I thought about that design when reading all the stories about the latest turns in the eurozone and Greece in the Sunday Post and Times. One problem plaguing the eurozone is that nations share a currency but not much else. Their budgets, bonds, borrowing and spending - and politics - is each different. Exhibit A is Greece and Germany, with Germany obviously fed up with Greece's spending and politics.

One goal of a united, post-war Europe was to put an end to political rivalries and nationalism.  Another goal is economic; the eurozone is supposed to create one, big, united economy much like the one in the U.S. As you know, in our united states wealthier ones such as California and New York support their poorer brethren like Mississippi and Alabama. Unfortunately, now that the chips are down Germany does not want to eurozone to function like that. Instead of propping up they have decided to force austerity on the poorer nations of Europe. 

In doing so, Berlin has cynically prioritized their banks over their fellow European citizens. Clearly, German-imposed austerity has not worked. 

As the New York Times editorialized today, one way to make the eurozone actually function is to unite European financial markets and economies - not just currencies. The Times goes on to point out that that kind of unity is unlikely since countries such as Greece, Italy, Spain and Ireland do not trust eurozone bureaucrat in Brussels (even though the Greeks would obviously benefit from being as transparent and prudent, etc. as the Germans), and vice-versa.  

That's where the Senate comes in. Though it slows things down, which can be but isn't always a bad thing, I am still a big fan of bicameral legislatures (sorry parliamentary democracies and Nebraska). Perhaps integrating currencies, economies and markets would work better if the existing European parliament was given greater authority AND was complimented by a Senate that functioned exactly as ours did - complete with the filibuster and cloture, and most importantly, every member of the European Senate, no matter how big or small, had 2 seats.  

Countries would be equals financially AND politically. Joining such a union or zone would also force a nation to decide, "Do you care about a union of equals or do you only care about YOUR national interests" -- and in this case German banks.

New Day, Old View in Ελλας

Two days into the Syriza era in Greece and the world economy has yet to collapse!

Though Greece is still in the eurozone new Prime Minister Alexis Tsipras has shaken things up a bit already, starting with his inauguration. As the son of a Greek Orthodox priest and the nephew of two more, including one in the motherland, it is still hard for me to believe that an atheist could get elected Greek prime minister. Tsipras solidified his non-creed cred by holding a secular swearing-in service without a Bible or priest. 

Another change is that Tsipras appointed Greece's first cabinet minister to root out and fight corruption, a laudatory move that elevates solving one of the country's most intractable and urgent problems. Hopefully the minister's job will also include shaming/ cajoling/forcing Greece's wealthiest citizens to actually pay their taxes. [Republicans like to point to Greece as an example of a failed welfare state but as I blogged before it is a GOP paradise: the rich simply don't pay taxes.]

An atheist PM. Fighting corruption. Those are two new, never-been-seen-before qualities for a Greek prime minister. One other change proposed by Tsipras, an end to the European sanctions against Russia, looks new and bold but is actually an old, tired and failed policy. 

During the 400+ years that Greece was part of the Ottoman Empire, Greeks repeatedly looked to the northeast, to our Orthodox coreligionists in Russia, to come liberate us and restore a Byzantine Orthodox Empire with Constantinople as it's capital.

As you may know, that never happened. Nevertheless, too many Greeks have inexplicably always looked to Russia. It didn't matter if Russia was ruled by czars, Communists, dictators, or thugs; many Greeks continued to look longingly - and unrequitedly - to Moscow. 

It's ironic that a guy who wants to do things differently in Greece - which is admirable - includes a tired, old and failed attitude towards Russia on his to-do list, and that an atheist wants to nurture an old relationship built on Orthodoxy. 

My Quick Take on the Looming Greek Elections

Unlike the last time they went to the polls, the fate of the world may not be decided by the Greek electorate on January 25th.  The German banks that were repaid by the troika - IMF, European Central Bank, European Commission - that bailed out Greece two years ago are liquid again; since they have gotten their money Germany apparently does not fear a Greek exit from the eurozone if Syriza wins.

Though the leader of that party, Kosta Tsipras, is a loon a vote for Syriza does have some good points, mainly as a vote in opposition to the austerity measures forced on Greece and other eurozone nations like Spain, Ireland and Italy. It's striking to see Europe cling to austerity; their economies are so weak that Greece - GREECE - was one of only 3 eurozone nations that saw economic growth in 2014.

Contrast that with the U.S., where President Obama - with robust Democratic majorities in the House and Senate - went in the other direction and passed a stimulus bill in 2009 that kept our economy above water and paved the way for a robust recovery that is still picking up steam. Republicans wanted to push cuts in spending and emulate the European elites they supposedly despise.

But the German banks were repaid so that's all that matters to the EU.

Also unlike the last elections in 2012, eurozone leaders do not seem that alarmed about Greece possibly leaving the common currency.  Again, their banks have recovered so Greece, which is only 2 percent of the European economy, is back to being a blip on the radar screen.

But having an EU nation drop their common currency seems awfully cynical, politically.  The economic union of Europe was supposed to herald a era of continental cooperation and integration.  Has the EU stopped aspiring to those lofty political and cultural goals?  Seems like it.

While I would love to see an anti-austerity party win the Greek elections, and see an anti-austerity movement pick up steam in Europe, I can't get behind Syriza. It's ironic that they are somewhat anti-American - Syriza has threatened to kick the U.S. Navy out of Crete, opposes sanctions against Putin, etc. - when what Greece really needs is to emulate the U.S. and become a meritocracy, embrace immigrants (which Greece USED to do), and convince the E.U. - from the inside, instead of dropping out of the eurozone - to try an Obama-style stimulus instead of austerity.