Greece as a Precautionary Tale of the Welfare State

"After the Welfare State", edited by Tom G. Palmer (Washington, DC: Atlas Economic Research Foundation, 2012), pp. 21-30

10 Pages Posted: 14 Jun 2013 Last revised: 15 Jun 2013

See all articles by Aristides N. Hatzis

Aristides N. Hatzis

University of Athens - Department of History & Philosophy of Science; National and Kapodistrian University of Athens - Faculty of Law; Athens University of Economics and Business - Department of Economics

Date Written: September 1, 2012

Abstract

Few contemporary democracies offer tales of institutional failure as startling as that of Greece. Despite a turbulent political history in the twentieth century, the Greek economy gained ground during decades of actual wealth creation, until the country’s main parties started to compete on the basis of welfare statism, based on populism and patronage.

Modern Greece has become a symbol of economic and political bankruptcy, a natural experiment in institutional failure. It’s not easy for a single country to serve as a textbook example of so many institutional deficiencies, rigidities, and distortions, yet the Greek government has managed it. The case of Greece is a precautionary tale for all others.

Law and economics scholar Aristides Hatzis shows how short-term pursuit of political advantage through statist policies generated corruption, indebtedness, and political collapse.

Keywords: Greece, Greek Crisis, Sovereign Default, Transaction Costs, Overregulation, Pressure Groups, Corruption, Rent-Seeking, Tax Evasion, Welfare State, Populism

JEL Classification: H11, H26, H50, H62, K23, L51, O17, O52

Suggested Citation

Hatzis, Aristides N., Greece as a Precautionary Tale of the Welfare State (September 1, 2012). "After the Welfare State", edited by Tom G. Palmer (Washington, DC: Atlas Economic Research Foundation, 2012), pp. 21-30, Available at SSRN: https://ssrn.com/abstract=2279217

Aristides N. Hatzis (Contact Author)

University of Athens - Department of History & Philosophy of Science ( email )

University Campus
Ano Ilisia
Athens, 15771
Greece
+30 210 7275565 (Phone)
+30 210 7275530 (Fax)

HOME PAGE: http://www.phs.uoa.gr/ahatzis

National and Kapodistrian University of Athens - Faculty of Law

Athens
Greece

Athens University of Economics and Business - Department of Economics ( email )

Athens
Greece

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