A Dutch Child's Solution to the Euro Crisis
The Wolfson Economics Prize today announced finalists in the competition to outline a plan that would ensure "the soundest foundation for the future growth and prosperity of the current membership" in the event that "member states leave the Economic and Monetary Union."
As you might imagine, the finalists in the competition are all accomplished economists and financial analysts. However, 11-year old (just 10 when he submitted his plan) Jurre Hermans from the Netherlands has received special recognition from the panelist of judges for his entry in the competition. For his efforts, he has won a €100 gift voucher. Here's his plan for how to solve the Euro crisis:
Dear Sir and Madam,
My name is Jurre Hermans. I am 10 years old and live in the Netherlands. I am quite worried about the eurocrisis and look at the TV news daily. The eurocrisis is a big problem. I think about solutions. Since I read in the newspaper about your price, I thought that I would like to submit my idea. The idea might fit. So here it is:
I made a picture of my solution and I will explain it to you.Greece should leave the Euro. How do you do that?
All Greek people should bring their Euro to the bank. They put it in an exchange machine (see left on my picture). You see, the Greek guy does not look happy!! The Greek man gets back Greek Drachme from the bank, their old currency.
The Bank gives all these euro's to the Greek Government (see topleft on my picture). All these euros together form a pancake or a pizza (see on top in the picture). Now the Greek government can start to pay back all their debts, everyone who has a debt gets a slice of the pizza. You see that all these euro's in the pizza's go the companies and banks who have given loans in greece (see right in my picture)Now here comes the clever part of my idea:
The Greek people do not want to exchange their Euro's for Drachmes because they know that this Drachme will lose its value dramatically. They try to keep or hide their Euro's. They know that if they wait a while they will get more Drachmes.
So if a Greek man tries to keep his Euros (or bring his euros to a bank in another country like Holland or Germany) and it is discovered, he gets a penalty just as high or double as the whole amount in euros he tried to hide!!!
In this way I ensure that all Greeks bring their euros to a greek bank and so the greek government can pay back all the debts.
I hope my idea helps you!!!!Ofcourse if a country has paid back all his debts, he can return to the eurozone.
And the picture:
It may be hard to see in this condensed version of Jurre's diagram, but I assure you, the Greek guy does not look happy!!
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Comments:
Jun '10
Re: A Dutch Child's Solution to the Euro Crisis
It takes a clear mind to develop a simple solution.
Mar '11
Re: A Dutch Child's Solution to the Euro Crisis
Here is an easier one.
Let the Greeks keep their Euros - think of them as potential seed corn.
All Greek government obligations are, from now on, to be paid in drachme.
That is neater, and does not involve making ownership a crime.
Edited on April 4, 2012 at 1:27amJan '11
Re: A Dutch Child's Solution to the Euro Crisis
One wonders if the Greek government has looked into the possibility of suing young Hermans under the EU's defamation laws for his stereotypical caricature of the Greek people as being unhappy, much less as greedy, money-grubbing trolls.
Surely this will make some Greek guy somewhere slightly upset and thus in desperate need of some social justice.
Edited on April 4, 2012 at 1:47amFeb '11
Re: A Dutch Child's Solution to the Euro Crisis
Brilliant! There is hope for the future, even in Europe.
Dec '10
Re: A Dutch Child's Solution to the Euro Crisis
Um... one big problem (and I feel kinda stupid picking apart a 10 yr old kid's plan).
The people bring Euros into the bank. The bank takes the Euros and gives the people drachmas. The bank then gives the Euros to the government to pay all of the debts.
So, does the bank just plan on closing their doors immediately since they now have no Euros and no drachmas?
Apr '11
Re: A Dutch Child's Solution to the Euro Crisis
He is young and has yet to go through the proper number of sensitivity courses that will explain to him why his views are racist and immoral.
Apr '11
Re: A Dutch Child's Solution to the Euro Crisis
The Great Adventure!: Um... one big problem (and I feel kinda stupid picking apart a 10 yr old kid's plan).
The people bring Euros into the bank. The bank takes the Euros and gives the people drachmas. The bank then gives the Euros to the government to pay all of the debts.
So, does the bank just plan on closing their doors immediately since they now have no Euros and no drachmas? · 14 minutes ago
Maybe he means the Greek Central Bank...which won't close down because it is tax funded. It will just get more money in Drachmas from Greek Tax Payers when they pay taxes in the coming fiscal year, or better yet print more Drachmas because it can.
Edited on April 4, 2012 at 2:24amJul '10
Re: A Dutch Child's Solution to the Euro Crisis
Too bad this kid wasn't available when Rick Snyder appointed an emergency financial manager for Detroit.
Dec '10
Re: A Dutch Child's Solution to the Euro Crisis
Valiuth
The Great Adventure!: Um... one big problem (and I feel kinda stupid picking apart a 10 yr old kid's plan).
The people bring Euros into the bank. The bank takes the Euros and gives the people drachmas. The bank then gives the Euros to the government to pay all of the debts.
So, does the bank just plan on closing their doors immediately since they now have no Euros and no drachmas? · 14 minutes ago
Maybe he means the Greek Central Bank...which won't close down because it is tax funded. It will just get more money in Drachmas from Greek Tax Payers when they pay taxes in the coming fiscal year, or better yet print more Drachmas because it can. · 3 minutes ago
Edited 2 minutes ago
Yeah, you're probably right. The Greeks could take a page from the Obama/Bernancke/Geitner playbook - just roll out the printing press.
Jun '10
Re: A Dutch Child's Solution to the Euro Crisis
This kid seems at least as well-qualified to run the E.U. as Herman Van Rompuy.
May '10
Re: A Dutch Child's Solution to the Euro Crisis
A potential flaw in the young man's reasoning is that he assumes that you could scrounge up enough euros in Greece to make a decent pizza, or that the EU member states could reach agreement on the pizza toppings. He also failed to draw the unhappy German guys watching the Chinese run off with the pizza before they get a slice.
Still, I'm sure that EU officials will be up late studying the proposal all week.
May '10
Re: A Dutch Child's Solution to the Euro Crisis
He looks just like my Dutch nephews.
And I'll mention in passing that I have 5 Dutch children of my very own, the littlest of whom turned nine today.
May '11
Re: A Dutch Child's Solution to the Euro Crisis
Kids often see things so very simply, maybe he is not able to cover 100% of the potential problems, but his over all plan at least is a plan, so much of what we see coming out of the Euro zone recently seems to have been put together in a very random fashion.
I remember explaining taxes to my daughters, after they went out at Halloween (yes we do trick or treating in Tokyo!) I got them to lay out their candy on the kitchen table, I then took 30% away and told them I'd be giving it to the kids down the street who did not bother to dress up and come out for the trick or treat event we had all planned. They were not very happy about that, and said things like "I worked hard on my costume and spent my time getting the candy, why should that kid down the street who did NOTHING get 30% of my candy?". Worked like a charm! I also pointed out that one of their friends who had caught a cold could not go trick or treating, so we should give her some candy, they were cool with that!
Aug '10
Re: A Dutch Child's Solution to the Euro Crisis
A kid that both recognizes that people should be penalized for their bad actions and banks/businesses should have the money they lend repaid?
The Force is strong with this one...
Re: A Dutch Child's Solution to the Euro Crisis
White people are still having children in Europe? Who knew? *PC alarm goes off* Sorry about that.
If I'm not mistaken, young Mr. Hermans is fortunate enough to live in a state outside of the Eurozone.
Feb '12
Re: A Dutch Child's Solution to the Euro Crisis
LOL
Oct '11
Re: A Dutch Child's Solution to the Euro Crisis
With all due respect, our little Dutch kid should go play with some Legos, Van Rumpuy and Barroso are more than enough to destroy Greece.
May '10
Re: A Dutch Child's Solution to the Euro Crisis
He doesn't specify, so I'm assuming that Greek pizza is a spicy Mediterranean from Cottage Inn.
Re: A Dutch Child's Solution to the Euro Crisis
There appears to be pepperoni on that pizza, so the plan will fail.
Should have gone with sausage and pepper.
Apr '11
Re: A Dutch Child's Solution to the Euro Crisis
That kid's a gyro in my book!