Essay by kshannon8028College, UndergraduateA, October 2014

download word file, 4 pages 0.0

On any given day in America we do not have to worry about our economy completely failing or things like the great depression repeating itself. However, not every country is that fortunate and the citizens of these countries have it worse off than most of us care to realize. Greece within the most recent decade has hit a substantial defalcation in their economic sustainability. The major factors that have contributed to this have forced the government to cut the budget radically. Austerity, or the decrease in government spending, including social programs and tax increases has affected the people of Greece. Since we are a more globalized network, it is important to explain and understand this economic crisis, who is suffering, and what measures are being taken to overcome this hard time.

Many things have contributed to the decline of the Greek economy, but most sources are pointing the finger at the European Union (Fotopoulos).The

European Union is a compilation of twenty-eight European nations that were formed after the second world war to promote free trade between the countries and to reduce conflict In the first twenty years that Greece was a part of the European Union. there did not seem to be any economic travesties until the entry into the eurozone in 2001 (Dellas, Tavlas). Their previous currency, the drachma, held slight value compared to the euro. Once the euro was fully adopted and the only form of currency accepted by the country of Greece, public spending soared tremendously. At this point, Greece began living beyond its economic means which could only mean one outcome for their future. Between the years 1999 and 2007, public sector wages rose fifty percent which is faster than any other country in the eurozone ( According to the crisis timeline, the 2004 Olympics held...