Much has been made of the Greek situation as of late, especially given the emotional protests and debtor lifestyle the country is currently enthralled. While Greece as a country and their policies are not without flaws, we thought a simple and unique comparison may be of interest.
Imagine for a moment, there was only one shirt for us all to wear. When the European Union was established, many of the participating countries were similar to kids. Many were not mature, had limited individual problems, and excitedly entered the EU, as a one size fits all shirt was just the ticket.
A one size fits all shirt, promises ease of decision-making, a loose commonalty, and similar identity, just as it might if we were children, all wearing the same shirt.
As countries mature, they begin to have their own identity, make their own decisions (good and bad) and begin to gravitate in unique directions. The one size fits all shirt no longer has many of its advantages. Our mythical shirt, which made us all feel stronger as kids and gave us a nice feeling commonality, is actually becoming restrictive. Just like in life, countries grow at different paces and to totally different sizes.
The cost of our mythical shirt suddenly becomes too expensive for one in our group
When it becomes time to replace our mythical shirt, again for a one size fits all, one person in our group cannot afford the replacement cost. In our example this person lacks some of the levers to purchase a new shirt; devalue its currency, default, make individual austerity measures to slowly begin saving enough for the shirt. (Maybe they don’t even want to wear the shirt anymore.)
As time continues to pass and our group continues to change and move in unique directions the many advantages of a one size fits all shirt MAY lead to a rejection of the group as a whole, leaving one or many to opt for their own shirt, thereby controlling cost, growth and size on its own.
This is just our mythical example, but it does have merit and may bear a resemblance to what Greece is dealing with currently.
Have a Great Day!