The Political and Economic Issues Underlining Greece
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Over the five years since the crisis in Greece began, residents and economic experts alike are struggling to foresee a time when the country might escape its hardships. Last year, over 20% of all Greeks could not afford to pay the basic comforts to provide a reasonable standard of living. This is almost double the announced number in 2010, when the debt crisis first exploded. From 27.6% in 2009, the percentage of Greek locals at risk of severe deprivation and poverty has now climbed to 35.7%.
Over the five years since the crisis in Greece began, residents and economic experts alike are struggling to foresee a time when the country might escape its hardships. Last year, over 20% of all Greeks could not afford to pay the basic comforts to provide a reasonable standard of living. This is almost double the announced number in 2010, when the debt crisis first exploded. From 27.6% in 2009, the percentage of Greek locals at risk of severe deprivation and poverty has now climbed to 35.7%.
This is what happens when you over-tax businesses and have a corrupt system. So, many people do not want to work hard. Greece ran itself in the ground, which is what California and New York are doing.
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Greece did this to themselves
Throughout Greece, poor numbers mean that more people than ever are currently falling into worrying debt, with non-performing loans amounting to over 1 billion euros due every month. In September of this year, the tax debts for the country were at an astounding €70.16 billion, and the economic contraction has pushed public debt to 174.9% of GDP. Painfully high taxes and a lack of reasonable credit have ravaged businesses, and the citizens of Greece are feeling the turmoil and pain.
The six-year recession that Greece has experienced so far, slightly mitigated by the fiscal austerity international creditors demanded, has demolished at least 25% of the economy. Twenty-eight percent unemployment levels are leading to mass protests from its people.
The Living Standards in Greece
The statistics agency known as ELSTAT conducted a study of the average living standards for residents within Greece during 2014. The result found that more people than those experiencing ‘extreme poverty’ could not afford necessities. People everywhere within the country can no longer afford to pay for basic expenses or keep their homes warm during the winter months.
The ELSTAT study showed that over 20.3% of Greeks could not afford at least four out of the nine conditions outlined to define economic hardship. Some of these hardships included not being able to eat chicken or meat regularly, or being unable to afford a short and/or simple vacation. The poor should not consider a vacation.
Almost a third of Greece could not afford to keep their home warm during the winter last year. This led to many complaints after the government decided to raise taxes on heating oil in an attempt to improve state coffers during this crisis. America’s FDR did the same thing in the early 1930s, which made the Great Depression the Great Depression.
The Political Situation
The political trap within Greece is at a dangerous junction following the €240 billion bailout agreement put in place by the country’s creditors. These creditors include the European Central Bank and the International Monetary Fund. However, critics suggest that the agreement did not consider the social and political impact of forcing major changes onto a population while they are already experiencing serious economic pressure.
Before the elections in Greece occur, Pasok and the New Democracy will focus on the instability to avoid a Syriza victory, whereas Syriza will try to block any pre-election progress. Whichever way, the economy has been suffering and will continue to suffer. Where is the Ronald Reagan or Margaret Thatcher of Greece when you need them?
