When Economies Fall


The UK was downgraded by Moody’s Investors Service recently, an expected occurrence with the country’s slow growth and steadily increasing debt. All around the world, economies are struggling with similar problems. The economic crash of 2008 resonated around the world, causing problems in the United States, Iceland, and many more countries.

Greece had its own debt crisis throughout 2010 and 2011, and riots are still commonplace as the country tries to find its way out of bankruptcy. The Greek economy was booming in the late nineties and early 2000s, but the government soon found itself in serious debt as they continued heavy spending even as the world economy slowed.

When the face of tourism and shipping changed with the economy, Greece suddenly found that its once strong economy was rapidly weakening and debt was piling up. The country’s credit rating was downgraded first by Standard & Poor’s and later by other credit rating agencies.

Greece found itself in need of bailouts from the EU, which are not given easily or without regulation. The government was forced to take austerity measures that raised taxes and cut public spending in exchange for the bailout. This sparked riots beginning in 2010.

Since then, Greece has continually struggled to fight its way out of bankruptcy. Riots, some peaceful and others violent, have taken place all around the country and are particularly dangerous in Athens. Strikes, demonstrations, sit-ins, occcupations, suicides, rioting, civil disobedience, and police violence have all accompanied the recurring protests over how to deal with the economic situation.

As U.S. government officials refuse to come to any sort of agreement over how to deal with the economic situation here at home, Americans are forced to sit, wait and wonder. If we are unable to get our debt under control, things could easily continue to worsen for us—and though the Greek riots seem alien now, they ought to serve as a warning for the U.S. to get its act together.

Post a Comment

Previous Post Next Post