Greece’s Economic Turmoil and the Global Economy

The Troika, made up of the International Monetary Fund, European Commissions and the European Central Bank have the most to lose in this debt crisis as they own 78% of Greek debt. With so much to lose we have seen European “bailout” agreements that mostly front the Greek government more money coupled with crippling austerity in an effort to “rebuild” the economy. Austerity discourages growth as it cuts the spending of the government who is by far the biggest spender in the economy. The effects of austerity can be devastating, but the true effects are often hidden beneath the messages we get from mainstream news sources. The stereotype of the Greek people as lazy and tax evading has desensitized the public and has made austerity seem like more of a sensible option. The media messages have made strict austerity measures seem justified and in effect have hegemozined the Greek people.

The country adopted the Euro in 2001, three years after many other EU countries had already done so, due to budget deficits the country was going through whilst under the drachma (Buchanan, 2015). As a result of their adoption of the Euro, they experienced a period of economic growth from 2001-2007, but many economists deemed it “unsustainable” due to the country taking out cheap loans through the EU (Buchanan, 2015). In 2008, when the global market crashed, Greece was unable to climb out of debt, as unlike in the past, where it could simply print more money, due to them being under the Euro, which is controlled by the European Central Bank, they were unable to do so. As a result, unemployment skyrocketed in the country, reaching heights of 25% (Buchanan, 2015). Following the beginning of the debt crisis, the number of terror incidents spiked from 18 in 2007 to 118 in 2009 (START, 2016a). As many domestic terror organizations in Greece are anti-capitalist, they likely blamed the foreign corporations and banks for the financial crisis and attacked their property as a result. When Greece was bailed out twice, once in 2010 and again in 2012, it unfortunately did not fix the problem as the money the country was given was simply turned around and used to pay off international debts rather than stimulate the economy (Buchanan, 2015). This failure to protect the investments of the Greek people may have led to another spike in incidents in 2013 (START,

The Greek people are suffering while trying to keep their jobs to pay for the rising taxes. With an unemployment rate of over 60%, the youth even have a difficult time finding jobs to help their families. Being unemployed is not only a rough situation to be in with no money is coming in, there is more to it, “The longer a person is unemployed, the less employable they become. Re-entering the workforce also becomes more difficult and more expensive.” (Rodgers 9). Not only that, but people in Greece lose their health insurance after being out of work for over 2 years. The unemployment factor is a big effect on the Greek people because of the

Greece is one of many countries that have had its vicissitudes that have occurred frequently throughout history. There have been multiple leaders, wars, debts, and losses that have been recorded through history. Although Greece has had its many eras, “Each era has its own related sphere of interest.” (History of Greece). The complications that originated in ancient Greece are now reoccurring in present day to an extent. Fortunately, Greece is a country that is very strong; they are not afraid to fight for what they feel is right. It also helps that Greece stays out of any worldly dilemma that does not have anything to do with them. Of course, there have been times in which Greece has been defeated or taken advantage of, but the country did

Greece is a thriving country, but if it wasn’t for its beautiful islands, seas, and mountains, Greece would not be as strong of a country today. All these factors have helped Greece grow as a country. Throughout history, various mountains such as Mount Olympus and seas such as the Mediterranean have played an important role in the development of Greece history and culture.

Being unaware about issues on the other side of the world made me realize on intriguing economic debt crisis that is going on in countries that seem like they are holding together. Greece and the European was a great issue to discuss and view both sides before since I was unaware that there was a long going crisis going on in this side of the world. Greece can either get a so many bailouts repeatedly or they can fend for themselves to find how the country is able pay back the debt they owed the EU within the past years. In my opinion, I think that Greece should give the money from the EU to survive.

History tends to repeat itself and Greece is no exception. Greece’s current economic crisis can be partly blamed on Greek mythology. It can be seen with Greece’s prime minister Alexis Tsipras decisions in policy which have resulted in similar repercussions as the myths. For example,

Ever since the end of 2009, Greece has been involved in a financial and economic crisis that has been record breaking and shattered world records in terms of its severity and worldwide effects. The Greek government, since the beginning of the crisis, has attempted to take several governmental measures to try and “stop the bleeding,” including economy policy changes, dramatic government spending and budget cuts and the implementation of new taxes for citizens. In addition to this, the government has tried to alter the perceptions of Greek government and economy by the rest of the world in an effort to appear both more liberal and more democratic. Greece has also been working to privatize many previous

The roots of Greece’s economic problems extend deep down into the recesses of history. After the government dropped the drachma for the euro in 2001, the economy started to grow by an average of 4% annually, almost twice the European Union average. Interest rates were low, unemployment was dropping, and trade was at an all-time high. However, these promising indicators masked horrible fiscal governance, growing government debt and declining current account balances. Greece was banking on the rapid economic growth to build upwards on highly unstable foundations. In 2008, the inevitable happened – the Greek debt crisis.

In 1999, ten European nations joined together to create an economic and monetary union known as the Eurozone. Countries, such as Germany, have thrived with the euro but nations, like Greece, have deteriorated since its adoption of the euro in 2001. The Eurozone was created in 1999 and currently consists of eighteen European nations united under the European Central Bank and all use the euro. The Eurozone has a one point six percent inflation rate and an eleven point six percent unemployment rate in 2014. Greece joined the Eurozone in 2001 and was the poorest European Union member at the time with a two point six percent inflation rate3 (James, 2000). Greece had a long economic history before joining the Eurozone. The economy flourished from 1960 to 1970 with low inflation and modernization and industrialization occurring. The market crash in the late 1970’s led Greece into a state of recession that the nation is still struggling with. Military failures, the PASOK party and the introduction of the euro have further tarnished Greece’s economic stability. The nation struggles with lack of competitiveness, high deficit, and inflation. Greece has many options like bailouts, rescue packages, and PPP to help dig it out of this recession. The best option is to abandon the Eurozone and go back to the drachma. Greece’s inflation and deficit are increasing more and more and loans and bailouts have not worked in the past. Leaving the Eurozone will allow Greece to restructure and rebuild

(Pavlakis, 2013) With so much to lose we have seen European “bailout” agreements that mostly front the Greek government more money coupled with crippling austerity in an effort to “rebuild” the economy. Austerity discourages growth as it cuts the spending of the government who is by far the biggest spender in the economy. (Kentikelenis et al., 2011) The effects of austerity can be devastating, but the true effects are often hidden beneath the messages we get from mainstream news sources. The stereotype of the Greek people as lazy and tax evading has desensitized the public and has made austerity seem like more of a sensible option. The media messages have made strict austerity measures seem justified and in effect have galvanized the Greek people.

Greece’s financial crisis has been in existence for almost two decades, and unfortunately is still widely unknown what has caused this prolonged catastrophe. The general population does not necessarily know that this economic crisis originates to a mistake made years ago, not due to the recession in 2008 that an abundance of countries around the world suffered. Greece intended to join the Eurozone, a group of European Union nations whose currency is the euro, in 1999. Initially, Greece was denied admittance due to its poor economic standing. After approximately three years, Greece was able to pose a fabrication of its own economic success, constituting a healthy economy, and meeting all financial goals that existed (Hahn). Once admitted into the Eurozone, Greece maintained the lie they initially had created in order to keep the euro as its currency. As anticipated, Greece’s budget deficit increased exponentially and soon led Greece into a recession, in which promulgated the truth of its economic stability. Greece is at fault for its own economic crisis and if it did not join the Eurozone, there is a large probability Greece would be an economically stable country.

Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal the whole event, a comprehensive review of the background is

In 2014, the unemployment rate in the United States was 6.2% oppose to 26.6% in Greece . This leads to a plethora of problems beginning with the overall health of the economy. Greece’s unemployment rate may have something to do with their

Greece has a history which really distinguishes its nation from the rest. In 1829, Greece achieved independence from the Ottoman Empire. During the second half of the nineteenth century and the first half of the twentieth century, it gradually added neighboring islands and territories, most with Greek-speaking populations. Following Germany’s defeat in World War II in 1949, Greece joined NATO in 1952. In 1981, Greece joined the EC, which is now the EU, and it became the twelfth member of the European Economic and Monetary Union in 2001. In 2010, the prospect of a Greek default on its euro-denominated debt created severe strains within the EMU and raised the question of whether a member country might voluntarily