Benefits «for every illness» (of the political system)

Greek society resembles Nasreddin Hodja's story about the poor man's house, which had only one room, too small to accommodate his family. So he asked Hodja to help him solve the problem. Hoca advised him and, gradually, day by day, filled the room with various animals. When the room became so crowded that it was impossible to breathe, he advised him to remove one of the large animals he had already brought in. The next day, the poor man thanked Hoca because his advice had helped him breathe again. The other animals remained, and of course he stopped complaining about the small house that was not big enough to meet his needs.

This is somewhat similar to the situation in Greek society, with economic measures that burden the people and the small benefits that the political system ultimately provides, as expressed by the government of the day.

They return a fraction of what they have stolen (to those who manage to get by with various «applications»).

People's incomes have been declining for 13 years. First with the memoranda and their policies, which continue to this day, then with the coronavirus shutdown, and now with inflation. And while the political system, with its decisions and actions, has impoverished the people to the utmost, it then comes along to «correct» the wrongs with the distribution of benefits that are an infinitesimal fraction of what has already been taken away, in one way or another, from popular income. In 2022 alone, we have: first the heating allowance for homes, then the fuel allowance for vehicles, now the electricity allowance, and a new fuel allowance will follow so that people can go on vacation... and then we'll see! In all cases, instead of taking measures that would solve the problem of excessively high fuel and electricity costs, which is largely due to long-standing government decisions, the policy of subsidies has been chosen—which solves no problem except, as the ruling party believes, that of its image among the people!

At present, especially since yesterday, it is the turn of the electricity bill subsidy via the «Power Pass» electronic application. The media are providing instructions on what citizens need to do to receive the subsidy. Citizens are looking for ways to submit the relevant application electronically, either directly themselves: those who have the necessary knowledge, or through accountants (who are generally busy and do not have time to submit applications for every issue in the context of the digitization of our lives, and not just procedures). Of course, no one is concerned with why the application must be submitted, instead of the government taking care of the retroactive abolition of the adjustment clause or setting a limit (cap) on the price per kilowatt hour. But these are the «wrong approach» for a political system (not just for the current government). which aims to take income away from the people through various measures, and then «return» a very small part of it in the form of «small allowances» – of course, under numerous conditions, which result in many exclusions and «crumbs» for those who ultimately receive any subsidy..

From Samaras-Venizelos to Mitsotakis, with Tsipras' seal of approval...

The system began during the memorandum period. They stole from us with political decisions imposed by creditors, and returned a minimal amount of what they had stolen in the form of ’retroactive« payments following court rulings, and with small allowances. The small allowances began in 2014 under the Samaras-Venizelos government with the allowance titled »social dividend.« The »social dividend« that Mr. Tsipras denounced in 2014 as »an act of shame, disgrace, and humiliation of every citizen« became his official policy as a government after 2015. In the period 2016-2019, as a government, SYRIZA made full use of the allowance process in the form of the »social dividend« to offset the bloody surpluses it achieved. On the one hand, it squeezed the people with its oppressive tax policy and cuts in social spending, within the framework of the third and worst memorandum, and on the other hand, it distributed crumbs from the surpluses, above the targets of the creditors, as benefits. This method of attempting to buy people's consciences, practically the citizens» vote, reached its peak with the payment of the «13th pension» in May 2019, a few days before the European elections, in an attempt to escape the impending crash.

Now that he has the seal of approval from the «left-wing government,» Mr. Mitsotakis is exploiting the «institution» of subsidies in every issue that puts him in a politically difficult position, in order to calm the spirits and deliver «social justice.» He refuses to take substantive measures and instead distributes benefits. He justifies his stance by invoking «arguments» of social justice. That is, if he takes substantive measures (e.g., reducing the special tax on fuel), it will benefit the wealthy more than the ordinary people. Of course, Mr. Mitsotakis, although he is very familiar with the issues, «forgets» that the wealthy even charge the gasoline they consume to their companies. It is not an expense from their personal income, which they save. On the contrary, the people consume all their income and it is not enough. Consequently The burden of excise duty and all indirect taxes on the working classes is enormous, while the €13 monthly «subsidy» for fuel is a complete joke..

A fundamental component of the system is the bleeding dry of popular income.

In the five months from January to May 2022, tax revenues in the state budget increased by €2.9 billion (16.4%) compared to the initial target! No detailed data has been provided on the sources of the increase, but by April, VAT revenues had increased by €755 million. In other words, inflation increases indirect taxes and public revenue, mainly burdening the lower classes, who consume all their income. The government then «returns» part of this in the form of a subsidy. It is characteristic of government planning that, as reported these days in the financial press, which has access to information, «the revenue surpluses will finance the government's decisions for a new expanded three-month subsidy package.».

Since Greece entered into the vortex of memoranda, all kinds of procedures to reduce popular income through political decisions have been a structural element of our economic system.. This process will continue for many years to come, as there is «pressure» through public debt. In order to address popular discontent and improve its image, the political system invented the concept of benefits, which have gradually become a structural element of the Greek economic system. These benefits return a very small portion of what the state takes from the people in one way or another. At the same time, however, they serve as an excuse for not taking measures that would address the root of the problems.

Paul Dermenakis