Austerity bites: Greeks sink deeper into poverty


Poverty rate changes in the European Union, 2008-2015. From Reuters.

Poverty rate changes in the European Union, 2008-2015. From Reuters.

When the greed and unprosecuted crimes of Wall Street banksters and their allies in London brought the world to the brink of financial ruin nine years ago, it was the world’s poorer nation who paid — and are continuing to pay — the highest price.

Greece isn’t the only nation in the eurozone to see a poverty increase since the start of the Great Recession, but it’s the only one to see a near-tripling of the number of its citizens in poverty, a direction result of the austerity regime implemented by the austerity regime forced on Europe’s nations with the highest debt levels.

As part of that austerity, the Troika of the Euroippean Central Bank, the European Commission, and the Washington-based International Monetary Fund have mandated massive layoffs of public workers, pay and pension cuts, and the higher costs associated with the privatization and sell off of public transit and power systems.

The Troika has been holding off on its latest bailout loan, demanding yet more austerity measures. But when it comes, most of the money will go right back to lenders on Wall Street, London, and Germany.

More from Reuters:

[R]egardless of who is to blame for the collapse in living standards, poverty figures from the EU statistics agency are startling.

Greece isn’t the poorest member of the EU; poverty rates are higher in Bulgaria and Romania. But Greece isn’t far behind in third place, with Eurostat data showing 22.2 percent of the population were “severely materially deprived” in 2015.

And whereas the figures have dropped sharply in the post-communist Balkan states — by almost a third in Romania’s case — the Greek rate has almost doubled since 2008, the year the global crisis erupted. Overall, the EU level fell from 8.5 percent to 8.1 percent over the period.

>snip<

International organizations, including the Organisation for Economic Co-operation and Development, have urged the government to prioritize tackling poverty and inequality.

Unemployment has slipped from a peak of 28 percent of the workforce to 23 percent but the rate remains the highest in the EU. Since the crisis began, the economy has shrunk by a quarter and thousands of businesses have closed for good.

>snip<

Better living standards seem as far away as ever. Over 75 percent of households suffered a significant income reduction last year, a survey by business confederation GSEVEE and Marc pollsters found. A third had at least one unemployed member and 40 percent said they had to cut back on food spending.

And with the latest round of austerity now in negotiation, things can only get worse.

Remember that, just as in the U.S., the employment numbers don’t reflect totals paid in salaries and benefits.

With rising costs for healthcare, transportation, and other necessities, coupled with pay cuts, living standards have been drastically reduced even for those who are working.

But, hey, a banskster’s gotta make a living, right?

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