7/14/2015

The present Greek crisis

The present Greek crisis

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The present Greek crisis

A couple of decades ago ten nations marshaled in Euro Core,which was to become the European Union. Their currency wasbased on the euro, and as the European Union grew in nations, theeuro took on a life of its own, and at points in time, rivaled and evensurpassed the dollar in purchasing capacity. Greece was one of theinitial partners, but during 2007 they started to become the weak linkof the union and eventually a Greek Crisis began. Looking back,one can compare their economic model to that of other doomedcountries, both in the European Union and outside of the union.

As an example, their retirement age is 62 years.

Compared to the United States, who, traditionally, let workersreceive full benefits at age was 65, and early retirement benefits at age62, with a permanent reduction in 80 percent of the full benefitamount. Now, the full benefit age is 66 for individuals born in 1943-

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1954, and ascends to 67 for those born in 1960 or later. A nations taxbase comes from the income taxes paid by eligible workers, inaddition to corporate taxes, and other tax generated income.

Greeces dwindling tax base.

A large part of Greeces financial erosion comes from a dwindlingtax base, because people over 62 are collecting pensions, the youngunemployment rate is at 30%, and movement of goods and servicesare stifled, because of a depressed economy. Greece has acquirednumerous economic bail out plans from the European Union and theInternational Monetary Fund. Now in the past France was thestepchild of the union, but Greece with its multiple debt crisessyndrome, constantly looks desperate, and has become ground zerofor EU government regulators, who constantly monitor their activities,in relation to their past and current banking crises.

A factor that is not discussed much, but is a contributing factor to theirdepressed economy, happens to be the fact that a large percentage ofits citizens were born between 1945 and 1964. This is the babyBoomer era. So you have a large ...

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