The Greek government accepted the austerity it had opposed and the people had voted against, taking the terms of the European Union bailout. [Read more…]
Greece has racked up a huge national debt and has such low economic growth that it is impossible to service that debt. Economics columnist Robert J. Samuelson points out that the situation in Greece is just an extreme case of what the American economy is up against. (Our national debt is now 105% of our Gross Domestic Product.) In fact, he says, that’s what a big number of the world’s nations are up against. [Read more…]
Greeks voted “no” on a referendum on whether they should let their economy get bailed out at the price of austerity measures. Now we’ll see what this will do to the Greek economy, to the Euro, and to the European Union. (Not to mention the rest of the world’s economy, including that of the U.S.A.) The Greeks started what would become Europe. Now they just might take it out. [Read more…]
The people of Greece will vote Sunday on a referendum on whether or not to accept the austerity measures that would accompany a bailout from the rest of the Eurozone. The Greek government is recommending voting “no” and just letting the economy collapse. Catherine Rampell explains how Greece–and Europe–got into this mess, making use of the predictions of the late free-market economist Milton Friedman, who is being proven right, as usual. [Read more…]
The world’s attention as been on Greece, as Europe hopes its collapsing economy and its rejection of austerity measures will not pull down the rest of the Eurozone. But what happened to Greece is also happening to the American territory of Puerto Rico, whose imminent default on its $72 billion debt–most of which is owed to U.S. investors (which don’t have that much exposure in Greece)–will have a far greater effect on the American economy.
The White House is refusing to bail out Puerto Rico but is instead asking Congress to pass a law allowing the territory to declare bankruptcy. But that means the American investors will take the loss, which won’t be good for the U.S. economy. [Read more…]
The economy of Greece has been a basket case, with a national debt that is more than the gross national product, leading to a European Union bailout that has imposed an “austerity” program of slashed government spending, higher taxes, and lower wages. But now the Greeks have voted to end the austerity, going so far as to elect a communist as Prime Minister who is demanding that Germany forgive its debts. [Read more…]