Dean Baker

Poverty in Greece

New York Times published a news article “Greece, Battered a Decade Ago, Is Booming” by Liz Alderman, with additional reporting from Niki Kitsantonis (Monday, Sept. 25 / in print on Saturday, Sept. 30, Section B, Page 1 with the headline: “A New Era of Prosperity for Greece”). The article informs us that Greece was hit by an economic crisis […]

Economist Dean Baker: Systemic Change Needed to Fight Big Pharma Price Gouging

Imagine there was a miracle drug that prevented HIV infections, but a huge corporation held back its release in order to squeeze billions out of the sick, dying and suffering. It is evil on the scale of comic book villains, a crime Bonnie and Clyde would balk at. That is exactly what pharmaceutical giant Gilead Sciences is accused of doing in a new lawsuit. 

Greece needs an exit option

There is no guarantee that Greece will be as successful with a return to the drachma, but there are reasons for optimism. First and foremost, the country now has both a primary budget surplus and a trade surplus. The primary budget refers to the national budget without counting interest payments. Greece is running a primary budget surplus of more than 3 percent of GDP (the equivalent of $500 billion a year in U.S. GDP). This means that if it didn’t have to pay interest on its debt, it would not need to borrow to make ends meet.