Question about the Greece crisis

[PC LOAD LETTER]

Mods- I didn't put this in The Situation in Greece because I feel it would be a burden to those trying to discuss current events. I feel it's more appropriate in the Learning section. However, please move it if you feel it would indeed be more appropriately located in Ongoing Struggles / Situation in Greece.

Was on the phone with my dad earlier, and we got into politics like we do a lot. He brought up Greece. Specifically, he was saying that Greece has the shortest work week, lowest retirement age, and highest government pensions in the entirety of Europe.

Actually, he was speaking from a capitalist perspective of "that's why they're so broke - everyone went to work for the government and Greece couldn't afford it anymore." I know that part's horse shit he likely heard on Faux News.

But can anybody elaborate on the working conditions regarding public sector employment? Is it true they have a shorter work week, earlier retirement age, and higher average pension from public sector work and that a significant population works in the public sector?

I'm curious about life in Greece. I also know that the situation in Greece predates the current financial crisis, so I am curious about the actual origin of it as well.

If anyone knows or can put me in the right direction it would be awesome.

[Demogorgon]

As a percentage of GDP, let alone per capita, Greece spends less on public services than the likes of Germany, France etc. Similarly a study recently showed Greeks work longer hours and retire later than Germans.

The myth of Greece having huge pensions and very early retirement comes from some of the patronage sinecures, but that is hardly the typical Greek worker. Greece's difficulties come from a failure to collect sufficient taxation and attempting to plug the gap through privatisation revenue.

[PC LOAD LETTER]

Interesting, I appreciate the response.

[blackandyellow]

A major problem in Greece is tax avoidence. You get situations where multimillion dollar making plastic surgeons will be claiming an income that is very small to get into a lower tax band.

Another problem is that Greece being in a currency union with places like Germany and other northern European countries, which are economicaly much stronger, is that it has an exchange rate which reduces its competitivness in the world economy. So Greece cant have a low exchange rate to sell it products, because the strenght of the German economy keeps it high. If it had a lower exchange rate, its produce would be cheaper to sell abroad, which would have meant it wouldnt have to borrow as much, or the increase in economic activity could have raised more taxes.

[ComradeOm]

Demogorgon pretty much nailed it. When compared to other Eurozone nations, Greece does not spend a huge amount of money on public services (although it is questionable as to what quality of service it receives in return). The media myth of the profligate Greeks is partly traditional prejudice against Mediterranean countries and partly the general assault on public services and the working class that is being waged in the name of 'austerity'

That said, there are deeper underlying reasons for the crisis in Greece. The euro, which exacerbates the trade imbalance with Germany, clearly doesn't help. Nor does the rampant tax avoidance and heavy defence burden (Greece spends proportionally more on its military than any other EU member). But the Greek economy is also fundamentally weak with little prospect of growth. It's got no real manufacturing base (something it has in common with Ireland and Portugal) and relatively little to export