Unless you have been living under a rock (I see you, Patrick Star) then you probably know about the economic crisis in Greece. If you don’t, then I suggest you visit my most recent article about the Skimm, subscribe immediately and prepare yourself for the real world.
The problem is that Greece owes quite a bit. Much like how you get sent to collections for not paying your dues after 90 days, or more, Greece is in deep trouble. Unlike many Greek life college students, Greece owes upwards of 242.8 billion euros or $271 billion. That is not pocket change, and it is owed to several different types of investors.
Around 240 billion euros are owed to various international funding entities, such as the IMF (International Monetary Fund), the European Central Bank, and the Eurozone. As well around 40 billion euros is owed to private investors.
So why is this important? Well, owing money personally is never a great idea, but for a country it can be very dangerous. While many countries owe money to investors, it can be difficult to pay back large amounts without seriously impacting the citizens.
Often, the more a country owes the higher the taxes the citizens pay yearly. In addition, the worth of the national currency can go down. In the case of Greece, it seems to be a lot like the Great Depression here in America.
The banks have set a maximum withdrawal amount so people don’t rush to get their money, but this also means that people are unable to be sure of the security of their money in the banks. In addition government employee’s pensions and benefits are at risk of being cut in order to save money.
People are losing their jobs and are unable to survive. This recession started in 2008 and since then around 17 people per month, or more, are committing suicide due to the pressure of these austerity measures. This is an eight percent increase over the last four years, and will likely increase with the serious austerity measures that have been introduced and accepted by lawmakers in Greece.
This is a serious problem, and it is mainly because Greece has let its citizens down. Now, I will admit that the lenders have worked to lessen the problems that these austerity measures could inflict. This is a serious problem because Greece is suffering, and if they drop out of the Eurozone all of Europe will face a recession, the likes of which have not been seen in a very long time.
It is time for a new approach and hopefully the newest deal that Greece has accepted will work to fix the mess that has formed. That is my hope anyway. Good luck, Greece.
