Conservatives Now Denying Austerity Ever Happened In Greece

Greece was to be the proof for trickle-down economists that their ideas would turn around any nation. After imposing some of the most severe austerity measures ever done, instead of thriving, Greece is now teetering on a fascist takeover and exit from the European Union. Having had their ideas completely debunked and destroyed, you would expect the Austrian School economists who pushed for austerity to revise their ideas. After all, that is how science works, you hypothesize, you experiment, you collect data, and then you reach a conclusion based on that data.

But not the trickle-down advocates, no sir! Initially, they tried to make excuses to explain why it did not work, claiming it was some external factor at fault while their ideas themselves were sound. When that failed, now these same right-wing economists have turned to revising history itself. In a piece published on August 6th, Edmund Phelps tries to rewrite history, and makes the astonishing claim that Greece not only never had austerity, but that only a complete privatization program combined with austerity can ever move the nation forward.

According to Phelps, it is a positive move for Greece to embrace the fascism of their far-right party, Golden Dawn. His complete disregard for the past 7 years of history for the making of his case is beyond ridiculous. His claims that government spending is not spending at all is even more insane, demonstrating that despite his nobel prize, his grasp of basic monetary policy is at best weak.

Going over the data from Eurostat, and the historical records, it is clear that his entire argument is rubbish. We can witness the dates of austerity implementation, and how they caused the economy to collapse further. (For a further analysis of the numbers, Billy Mitchell has done a thorough analysis.)

But demonstrating the power of the revisionists, the main Greek opposition is now flirting with the idea of forming a government with the fascist Golden Dawn party. Only last-minute cold feet prevented a fascist government from gaining the mandate to form the government. The next round, we might not be so lucky.

With trickle-down Austrian economists such as Edmund Phelps giving them an excuse, to claim that “no, we’ve never done Austerity, so let’s do it this time, with privatization,” we are witnessing the growth of fascism in Greece. And the shadow of fascism in Europe is not a scenario anyone wishes to see again.

PD Photo from