Greece’s Problem Is Shocking
Economic crises are always hard on the societies that are affected by them. They strongly impact unemployment, companies that do not make a lot of profit, and the people who dream of a better life. However, economic theory also states that at the end of a crisis the affected region can bounce back to where it was before the crisis started.
That is, of course, unless the region in question is Greece…
The Future of Greece
This is what awaits Greece: despite many years of work ahead and an unseen level of unemployment projected for 2025, the country will still have a lower GDP in two decades versus before the crisis.
Greece’s problem is not just related to cutting costs, but also how this will be implemented by the authorities. The combination of how structural reform is set up in tandem with cost restructuring programs makes people speak of a lost Greek generation.
To put Greece’s misery in perspective we added the chart below from the Great Depression in the US. It is clear that America’s GDP did not go down as strongly, but also that it came back to where it left of in 10 years.
Disclosure: None.
hummm...seems to me..this country was living on borrowed money for a long time..like some one living on there credit card,,tell it is max't out..any way pull up your undies get at'er and try woking for a change
Mmm...Cal, do you know that Greeks actually work the longest hours per week than any other EU country? Bet that surprised you, didn't it? Living on borrowed money, but also corruption with tax evasion by the big industrial players in Greece, and the tacit cooperation with former governments to protect wealthy Greek families, are the main reasons Greece is in the dire situation it is. And the sad part is that the average Greek, who works hard, and many of whom have been stripped of their pensions and savings due to government mismanagement, are the ones who are suffering. So please read some more before you make a statement like you did about "working for a change".