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KeepYourEyesWideOpen's avatar

Do you know anything about the debt crisis in the European Union?‎?

Asked by KeepYourEyesWideOpen (345 points ) January 18th, 2013

Speaking for myself, the answer is yes, and this crisis isn’t that surprising if you have a country like Greece in the Union. 70% of the Greek is an official. Officials get payed by the government. The government pays them with tax money, but officials don’t have to pay it. Therefore, the other 30% of the Greek population has to provide money for the 70% and I don’t have to tell you that this isn’t going to work very properly. It’d be better for Greece if they would leave the European Union, dropped the Euro and went bankrupt. They’ll lose all their debts and can rebuild their economy once again. Same like Iceland did a few years ago and look at it now; it’s again one of the leading economies in the world. Furthermore I’d like to note that the term ‘debt crisis in the European Union’ is kinda wrong chosen. The debt crisis is actually only in the Southern-European countries, such as Greece, Spain, Italy, France, Portugal and Cyprus. The other European economical powers like Germany and the United Kingdom, but also the Netherlands, Finland, Denmark and Sweden, are still one of the best in the world. What’s even more, the Netherlands, Finland and Sweden are in the top five of the best economies in the world (this list gets completed by Singapore and Switzerland). The media makes it always looks more worse and important then that the reality shows us.

How well informed are you ?

Thank you for the support that you bring directly to this.

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4 Answers

josie's avatar

As long as there are people who are willing to voluntarily or by force be willing to pay somebody else’s debts, there is no crisis. The problem occurs when people do not want to be forced into that obligation. Debt does not disappear. It merely gets transferred to somebody else until they refuse to pay it.

Kropotkin's avatar

From an OECD data sheet on Greece:“Greece has one of the lowest rates of public employment among the OECD countries, with general government employing just 7.9% of the total labour force in 2008.”

Not only nowhere near the ludicrous 70% you asserted, but actually lower than average.

Greeks, who overwhelmingly do not work in the public sector, also have one of the longest average working hours of any developed country in the world.

Iceland was never in the Euro and never had a sovereign-debt crisis (although they might have one in future now that they’re taking IMF loans.)

Ireland, Portugal, Cyprus, Italy, Spain and Greece have debts nominated in a currency they do not control and have very limited options in terms of monetary policy and finance. The European Central Bank in Germany controls the Euro, sets monetary policy that favours mostly Germany, and refuses to allow inflation to go over 2%, which would have helped those countries out of their debt.

The broader problem is the dominance of the finance sector and how their so-called experts are able to set the narrative and dictate to governments what their economic and monetary policies should be. The ludicrous downgrade of France’s credit rating is another such example—I suspect motivated by the election of the “socialist” Hollande. They have been responsible for forcing governments into imposing destructive austerity measures, deepening the recessions of Spain, Greece, and others.

I’ve no idea what you mean by “best economy” or why you imagine the UK is an “economic power.”

Better informed than you.

mattbrowne's avatar

Greece could become Europe’s Lehman’s. And Europe will survive this.

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