A couple of decades ago ten nations marshaled in Euro Core, which was to become the European Union. Their currency was based on the euro, and as the European Union grew in nations, the euro took on a life of its own, and at points in time, rivaled and even surpassed the dollar in purchasing capacity. Greece was one of the initial partners, but during 2007 they started to become the weak link of the union and eventually a “Greek Crisis” began. Looking back, one can compare their economic model to that of other doomed countries, 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 workers receive full benefits at age was 65, and early retirement benefits at age 62, with a permanent reduction in 80 percent of the full benefit amount. Now, the full benefit age is 66 for individuals born in 1943-1954, and ascends to 67 for those born in 1960 or later. A nation’s tax base comes from the income taxes paid by eligible workers, in addition to corporate taxes, and other tax generated income.
Greece’s dwindling tax base.
A large part of Greece’s financial erosion comes from a dwindling tax base, because people over 62 are collecting pensions, the young unemployment rate is at 30%, and movement of goods and services are stifled, because of a depressed economy. Greece has acquired numerous economic bail out plans from the European Union and the International Monetary Fund. Now in the past France was the stepchild of the union, but Greece with its multiple debt crises syndrome, constantly looks desperate, and has become ground zero for 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 their depressed economy, happens to be the fact that a large percentage of its citizens were born between 1945 and 1964. This is the baby Boomer era. So you have a large segment of the population who are baby boomers looking forward to retirement at 62, with high unemployment an a marginal tax base. The citizens for the most part feel that their government is not handling the economy very well, but before anything can really change, there needs to be legislative restructuring that will raise the …