Why Poor Economies in Greece, Italy, and Spain?

There is not much doubt that Greece, Italy, and Spain, i.e. the Southern European countries, are vulnerable economically. When I was a young man, these same countries were unstable. It’s nothing new.

People give surface and obvious reasons all the time. Why? Because they spent too much. But that just begs the question.

OK. So let’s get a bit deeper.

It’s because their governments give money to organizations who will vote for them. Who? Well, the unions, government workers, you know the story. Still surface and obvious, but not begging the question so much.

But don’t the politicians in Germany, the UK, and France want to be elected just as much as those in the Southern three? Of course. So, why don’t they act just as irresponsibly?

Now the question starts to get at what is at hand. Harder to beg it, too.

Psychepolitics looks beneath the surface, where others are not looking. So, what is under the surface? For one, in order for a government to adopt a policy, that policy must be consistent with the values and beliefs of a large segment of that society. The Southern three adopt irresponsible policies, because they are accepted by the populace. The beneficiaries of government handouts there don’t have to work hard, as much as they have to vote for their benefactors–the government leaders, who then give them more benefits and demand less productivity. What a vicious spiral! But, that’s not that inconsistent with societal values in those countries.

The Northern three adopt more responsible policies, because irresponsibly ones would be unacceptable by the populace. We’ll get to why in a moment. Basically, these countries value discipline, the ability to delay gratification, and hard work. The world is harsh. There is no low hanging fruit. Money does not grow on trees. The populace would be less inclined to support handouts for less or no work. Unions and government workers would be less demanding for handouts, would not expect them.

Let’s go even deeper and ask why. Why are these countries different in these ways?

One obvious difference between the Northern and Southern European countries is climate. The Southern countries are warmer. There are variations. The Southern three have temperate northern areas. Nonetheless, by and large, these Southern countries are warmer than the three northern ones.

Deeper. What happens when you grow up in a warm climate? Well, when a little child runs outside, his mother doesn’t remind him to put on his parka. When you grow up in a warm climate, there is not so much preparation for the winter. It is less important to get the house prepared, painted, whatever, because winter is coming. No “Hurry Up.” No “We can’t go to the park, because we have to do (whatever) before winter comes.”

At the same time, in the Northern countries, what does a child hear when he gets to the door to go outside and play? “Wait. Put your jacket on, Fritz.” What does a Northern youngster hear when he wants to go to the park? Again, he hears the importance of delay (of gratification), of preparation (for winter), of anticipation (of harder times), Each time the parents do this, they create a value in the child. The child grows up valuing delaying gratification. It is good to delay gratification. It is cool to delay gratification. The same goes for hard work, for anticipation of problems, and for preparation for harder times.

Now the question starts to be answered. Why do the Southern European countries indulge themselves and then get in trouble? Well, they don’t have values that say delay, and anticipation, and preparation are good, so they don’t delay gratification, anticipate disaster, or prepare for it.

It all starts in childhood, where parents’ values are transferred to them. They will carry it inside them, deep in their minds in their unconscious, for the rest of their lives.

While Ireland seems to be an exception, it likely has reasons other than climate for its problems. It does not negate the role of climate in psychological development and value systems. Take a look at the Americas. Mexico has a poor economy, while Canada’s is strong. Of course, when you look too far north, where there is not even a summer, there are numerous reasons for undeveloped economies.

Whatever the case, climate influences economic prosperity not just due to the availability of resources, but also the personal values climate embeds in its people.