Date: 22 Aug 15
By: Frank Gue, B.Sc., MBA, P.Eng.,
2252 Joyce St., Burlington, ON L7R 2B5
For: Editors, The Economist, London, UK
Re: Third time lucky, Aug. 15th Edition
Filename Economist re Production August
One bites one’s nails to read the everlasting casting of the Greek saga in terms of dollars. The real problem is lack of production and productivity, both of which must improve and neither of which gets even a passing mention.
Two truisms always overlooked are:
- One cannot consume what one has not produced, and
- Money is a claim on current production but, of itself, has no value. Nil. Nul. Zero. Nada. This is emphasized by the fact that, in 2015, it can be invisible small dots on a magnetic disc.
Bailout exercises merely kick the can down the road, causing the kickers to suffer increasingly painful stubbed toes as said can gets more massive.
Greece must note the 20,000 year old example of our cave-dwelling ancestor: if he fails to kill this morning, he doesn’t eat tonight. Unless, of course, he can trade one of his labor-intensive arrows for a slab of the deer his more successful neighbor killed.
What are Greece’s natural advantages? Endless sunshine on patches of specially productive land? Antiquities? Inexpensive educated labor? Short supply lines? How can these advantages be put to use to generate production that customers in and out of Greece will buy?
How can this saleable production be created with less labor, i.e. more productively? Because competitors are always at Greece’s heels.
How can the shoes made by Aristarchus settle at a value that approximates the value of the wine made by Theophilus? Does the Greek government know enough to get out of the way, excepting only to facilitate development of honest capitalism?
Money is only an enabler, a necessary but far from sufficient condition for a Greek bailout. Get productive production tended to and the money will look after itself.