Σάββατο, Δεκεμβρίου 01, 2012

The financial crisis in Greece.


by Dimitris Stavrou


Nowadays, we all live in the hit of a strong financial crisis as all the developed countries are looking their budgets destroying and damaging the lives of their citizens.

In Greece, the effects of the financial crisis are stronger than the ones at any other country of Europe. A great number of enterprises are closed, so the unemployment is getting increased reaching the proportion of twenty three per cent. About one million unemployed people are disappointed since they can’t afford their needs and the needs of their families. Additionally, we have a very high taxation level with new taxes appearing every month and reducing dramatically our incomes.
Moreover, the government decided to cut the salaries of the workers, both in private and public sector. Being a worker today in Greece means that someone earns from five hundred to two thousand Euros per month, maximum. Many workers lose their courage as they have no more motivation to produce or to apply new ideas in the fields of their professions. Many of them can’t afford their loans and mortgages so the banks threaten to seizer their property.
As a result, the greek people are facing serious psychological problems that procure various types of diseases: Depression, heart attacks and strokes are, according to scientists, directly linked with the economic situation. The more tragic is the fact that also the number of suicides has dramatically got increased…
Nobody seems to know exactly the causes of such a desire. On the one hand, those who believe that the bigger problem is the size of the greek state, with the large number of civil servants and public organizations not so useful. During the last decades, the greek state used to borrow a lot of money to pay its workers and suppliers. So, we created a huge Public Debt that we couldn’t pay back any more. As a result, the markets of money stopped lending us.
On the other hand, those who believe that the financial crisis is a essential effect of Capitalism. Since the banking system plays the role of the “lung” of our economies, it is difficult to avoid such crises. Thanks to the evolution o f Technology, new banking products are continuously created and the investors run after to gain benefits of them. This game promotes a “virtual economy” which has the power to influence the budgets of whole states.
The greek government tries to resolve this historical problem with the cooperation of International Money Fund, European Union and the European Central Bank. As they proposed, the government has already reduced the public expenditure, but only in the side of salaries. Is this the right solution ?
The majority of the economists think that more reforms are needed. Opening closed professions, privatization of public companies and reduction of the number of the civil servants are some proposals which give the hope of return to the economic growth. Other economists disagree: They prefer the absolute suppression of the greek debt so that the economy restart. But this opinion brings the question: How do our lenders can stop asking for the money they have already given to us ?
In the side of citizens, a lot of young people decide to immigrate. Countries such as the USA or Canada, with their financial stability, offer more opportunities for an interesting career. The young people who prefer to stay home think to change job and convey their activities to sectors like agriculture. Thus, we can observe a movement from the cities to the villages where the “neo-rurals” can find the land needed to cultivate new products by applying innovated methods.
Everybody agrees at one point: Greece is passing through a historical challenge and the Greeks have to learn how to adapt to it. In the meanwhile, we must stay optimists…




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