Kazi Hassan
11112342
A .Since the global downfall of the first world economies, none has been more epic than that of Greece.
Analysts blame Greece’s deepest recession ever on its corrup%on, piling debt, generous welfare and its
involvement in the Eurozone.
Greece’s debts had piled for the longest %me and when the financial markets in US crashed, it had been
an alarming point for Greece and its investments worldwide. The government had been galvanizing
secret debts, o*ering special benefits to corrupt government o+cials and overall mismanaging the
economy for several years. Over this period, Greece saw several run on the banks by investors and
general population, a severe leakage of its assets to tax havens like Sweden,Singapore and Cayman
Islands.
In the wake of the recession, there have been several ideas on how to get Greece out of this rut. The
neo-classical right rose during this %me urging austerity measures. Economists like Alesina urged how
debt reduc%on can bring back confidence in its economy and have private investment rolling. Other
economists also suggested how a reduc%on of wages could bring back compe%%veness. Much to the
distress of Greeks and a much awaited lesson in economics by economists, austerity was one of the
greatest experiments in economic history.
The priva%za%on of state assets, reduc%on in wages, lowering of re%rement age did nothing to help the
