What's a Greek Earn?

A Greek Urn
Channel 4 broadcast a very interesting programme last night - Go Greek for a Week - which demonstrated why the Greek economy is in such a mess.

Here's how the programme is described on the Channel 4 web site:

"Three British families try out the tax, pensions and work practices that caused Greece's economic crisis and brought on the austerity measures aimed at cutting the deficit and qualifying for EU bailouts.

A 54-year-old British hairdresser discovers the generosity of the Greek pensions system, which still allows hairdressers, pastry chefs, radio continuity announcers and people in almost 600 other jobs to retire aged 53 at 90% of their final salary because their jobs are defined as hazardous.

A bus driver reaps the rewards of the Greek approach to state-run services, where bus drivers could be paid up to almost double the national average salary and receive extra bonuses for arriving at work early and for checking bus tickets.

And a British surgeon is delighted to discover how paying income tax the Greek way will transform his disposable income.

The personal experiences of the three main characters are supported by expert interviews that establish the patterns of tax evasion, corruption and mismanagement that have helped to sink the Greek economy."

No doubt the programme would have made uncomfortable viewing - for the movers and shakers in Greek society.

Who have managed to build an economy where few people pay their fare share of  taxes - and where public services go nowhere near covering their own costs.

The upshot is that the Greece has been turned into an economic basket case - a sun-kissed version of a 'ponzi scheme' - which has finally come unstuck and needs to be bailed out by its European neighbours.

What the Channel 4 programme couldn't show was the reaction in Greece itself - where lots of people are understandably upset that the good times are over.

Yet at the same time nobody wants to take responsiblity for what's happened - everyone wants to blame someone else - everyone wants to have what they hold.

Maybe the creation of a government of national unity in Greece will start to turn things around - there are big issues to be faced - including how to prevent a calamity turning into a disaster.

But the bottom line is that Greece cannot go on spending more - much more - than the country's economy produces year after year.

Because that's what created the problem - in the first place.

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