William Thien

The Euro, Greece, and The Former Soviet Union

Posted on: May 24, 2012

It appears that the Eurozone is suffering from a similar circumstance that the former Soviet Union did during The Cold War, or bringing a myriad of states, all of them speaking different languages, using different currencies, and having often drastically different cultures, into one administrative system. It was an administrative nightmare for the Soviets. I’m not likening The Eurozone to The Soviet Union, one being free market, The Eurozone, and the other Communist, or The Former Soviet Union, but there are obvious administrative similarities.

One of the major problems the former Soviet Union had in dealing with its member states is the resentment of the variety of people from the different states having to adopt one administrative language, Russian, and one currency for the most part throughout, the Ruble. The net effect the various people believed was an erasure of their own culture in exchange for one they had difficulty accepting, or forced cultural adaptation, as would naturally be the case given the circumstances.

With the member states of The Eurozone having to adopt the Euro as their currency, not only is there a gradual erasure of culture due to the administrative commonalities of managing the Euro over the continent, there is a period of withdrawal involved which may last decades as citizens used to doing things “the old way,” using the old currency, want to see a return to “the old days.”

Furthermore, austerity may as well be more socially and or culturally acceptable in some Eurozone countries as a method of dealing with financial hardships than in others. Greece, of late, seems to be having the most difficulty dealing with austerity as a way of handling its financial crises. Cultural differences and The Tower of Babel syndrome, among other things, helped lead to the break up of the Soviet Union.

Many of the same circumstances exist in The Eurozone as did in the former Soviet Union. Will they lead to the same outcome is the question?

But there are other significant questions which we may consider given the parallels between the two, The Eurozone and The Former Soviet Union. Is the possible breakup of The Eurozone something to be concerned about? Will it have a massive negative effect upon The Global Economy as the Euro becomes revalued with each state that exits the Eurozone economy? Perhaps we can examine such potential by examining what happened to eastern Europe when The Soviet Union separated.

There are a lot of questions to be answered. Let’s hope we can answer them and provide economic solutions before it is too late.

Unless of course there is nothing to be concerned about at all, which of course is quite possible. It’s just that with the emotional component of world markets mixed in there, it is highly unlikely.

Copyright © William Thien 2012

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