The Economic Crisis Of Greece Essay

The Economic Crisis Of Greece Essay

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When the economy took a downturn in 2008 starting with the United States it soon became a global problem. That global problem has not been resolved in many countries and unemployment runs rampant throughout the world. Greece has one of the highest unemployment rates in the world and it has been struggling since its first bailout in 2010. There have been slight improvements, but overall the unemployment is still the largest in the world. Now, many economists fear that after such a long period of unemployment, very few people will be able to return to the Greek labor force. There have been suggestions of leaving the eurozone to help Greece revive its economy, but the best course of action would be to use expansionary fiscal and monetary policy. However, Greece is block from these routes because of the conditions of the bailouts. Despite the bailouts Greece still finds itself struggling to avoid bankruptcy and to meet the terms of the bailouts that were given to help them buy time.
Greece has been the focus of a lot of economic talks due to its debt crisis. When the global economy started to plummet, Greece revealed that it had actually been understating its deficits and was in a worse state than previously thought. It was quickly barred from borrowing in the financial markets and by 2010 it was heading into bankruptcy (The New York, 2015, p. 3). The first two bailouts were supposed to buy time for Greece to stabilize its economy on its own, but the money has been used to pay off international debts instead of being used to stimulate the economy (The New York, 2015, p. 4). The bailouts have helped, but the economic problems are still there. Greece’s economy has shrunk by a quarter and the unemployment rate is well above 25 percent (T...


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...ation that constantly needs financial help from its neighbors (The New York, 2015, p. 3). Another proposed fix would be for Greece to get loans in order to inject money into the industrial and manufacturing sector, which would create jobs to lower the unemployment rate, and have other countries such as Greece or Spain be able to receive lower interest loans and thus put more money into the people of those countries. With the costs increasing in Germany and Spain, Greece would keep a lower level of inflation and make the manufactured goods more appealing to the rest of Europe since they are relatively less expensive than goods made in Germany or Spain (Robbins, 2015, p. 185). Getting the employment rate to rise will not be an easy task for Greece to do, but it is a necessary one to get the global economy to return to the levels of performance before the crash of 2008.

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