Investing

Greece And The Right To Riot

The Greek constitution probably allows people to stage peaceful gatherings. It is unlikely that it permits those gatherings to turn into dangerous riots. Many Greek citizens don’t care about those laws and certainly have challenged whatever right the government has to enforce them.

It is not clear whether over history most large riots cause real change on behalf of those who do the rioting. Race riots across a number of American cities in the late 1960s may have advanced the cause of civil rights. They may also have turned many people against the movement. No one will ever be able to tell for certain no matter how much research is done or how many books are written on the subject

The Greek riots have already had some tangible effect. Unions and their allies have been able to shut parts of the nation’s transportation system. Those disruptions could become more permanent and severe. Nearly every economist who has looked at the union’s actions argues that they will wound the Greek economy deeply. GDP is tied to tourism more in Greece than most nations. Riots are not a good way to welcome visitors.

The right to riot will certainly be at the core of any action by the Greek government to put down labor unrest. Perhaps, the more people the government puts in jail or beats in the streets, the more likely it is that peace will prevail and Greek citizens will sullenly accept wage cuts and higher taxes. No one should count on that. Riots are riots in part because they violate laws. Threats of legal action often have little effect on the behavior of those who lead or participate in unrest.

The extent to which long and large riots will hurt the Greek economy cannot be calculated nor can their effect on Greek politicians. The EU and IMF will bail out Greece as its parliament has approved new austerity measures and will probably agree to the privatization of many assets. Those decisions may only make the unrest worse. There is no saying whether the government can stop the riots, which could extend for months, from becoming an almost permanent part of Greece’s financial problems.

Douglas A. McIntyre

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.