Why couldn’t have the Greek Gods solved this crisis before it got to this point? The good folks at Saturday Night Live explain why…
(sorry that the video is backwards)
It is well known that Greece took a massive bailout from the rest of the European Union when their own economy tanked. In return for the money, Greece agreed to become more thrifty and enact certain austerity measures. With the Greek economy now facing another year of serious shrinkage, many Greeks are beginning to second guess the demands made by their European bretheren. Why should Greeks have to be austere while their economy continues to lag? With this sentiment, more and more Greeks are latching on to new political parties that have made extravagant promises that plan to bring Greece away from austerity measures while still keeping the country on the Euro with the rest of the continent. This could have terrible repercussions. If other countries with debt issues (Spain, Portugal, Ireland) think in this manner as well, they are most likely doomed for another economic disaster. This would doom the EU and thus the global economy.
How should the rest of Europe react to this movement by Greek citizens? Is austerity truely necessary to bring Greece’s economy back from the dead? Is there another realistic strategy they can take?