The perspective of a Greek Citizen: Explain it to me

Hey Monkeys,

I need some help understanding Greece.

I consider myself to be genuinely understanding of other peoples perspectives. Europeans have a completely different mindset compared to Americans when it comes to public policy and entitlements, and I understand the view points.

That said, I can't wrap my mind around how the Greek society is rebelling against budget cuts. Greece spent money they didn't have due in part because they couldn't produce enough as an economy and because of poor public policy made by officials they elected. Time to pay up / cut back. Pretty straight forward to me.

Greece is on the brink of bankruptcy, citizens benefited from lavish entitlement programs for years, the entire EU could go down in flames with Greece, they've been given bail outs, and the Greek citizens have the gall to protest?

To blame who? The Greek Government? Germany? (The hand that feeds you). What do they think they are entitled too?


Time to blame yourself Greece and your 37 days of paid time off...

Please someone explain their perspective to me, because I don't understand how a Greek citizen can protest anything at all.

 
illiniPride:
They are blaming other people because they don't have the balls to blame themselves.

Also, people don't like being told to choose between poverty and starvation. Therefore Greeks have convinced themselves to fight for a third option which doesn't exist.

 

We really aren't that much better in the US. Just look at the California community college students protesting the increasing cost of tuition. The state spent money it didn't have, now it has to retract subsidies and entitlements, and people want to line up to claim "it's not fair." Everyone wants something for nothing. Just you wait until the rubber hits the road and we have to make real cuts to social security and medicare.

 
Boothorbust:
We really aren't that much better in the US. Just look at the California community college students protesting the increasing cost of tuition. The state spent money it didn't have, now it has to retract subsidies and entitlements, and people want to line up to claim "it's not fair." Everyone wants something for nothing. Just you wait until the rubber hits the road and we have to make real cuts to social security and medicare.

Maybe you should change your avatar to MITorbust

http://web.mit.edu/newsoffice/2012/johnson-kwak-book-event-0411.html

 

It's also a question of generations. I don't think you can blame the young kids in their 20s (the large majority of those protesting) for being forced to endure austerity measures that reduce their standards of living in Greece to little more than those of serfs in a vassal state. Their access to education, jobs and training have been heavily restricted by the proposed cuts and clearly it wasn't their fault. However, they should be equally angry at the generations before them - those for whom paying taxes was practically voluntary and for whom cheating their way into the EU seemed to be a decision without repercussions (idiots). Ultimately it's the Greek politicians that are to blame for endorsing a culture of living beyond your means and borrowing without even the faintest hope of holding enough in reserve to match it. Unfortunately it seems Spain and Italy are set to follow down the same path...

 
englandwales:
It's also a question of generations. I don't think you can blame the young kids in their 20s (the large majority of those protesting) for being forced to endure austerity measures that reduce their standards of living in Greece to little more than those of serfs in a vassal state. Their access to education, jobs and training have been heavily restricted by the proposed cuts and clearly it wasn't their fault. However, they should be equally angry at the generations before them - those for whom paying taxes was practically voluntary and for whom cheating their way into the EU seemed to be a decision without repercussions (idiots). Ultimately it's the Greek politicians that are to blame for endorsing a culture of living beyond your means and borrowing without even the faintest hope of holding enough in reserve to match it. Unfortunately it seems Spain and Italy are set to follow down the same path...

This. And it's the people suffering, not the politicians and rich doctors who caused the mess through corruption and lies in the first place. I'm part Greek and go there every summer as my father lives there. The shit is much worse and way deeper than the media shows. The amount of corruption is insane, and it's pretty much a police state.

This winter my friends didn't have enough money to pay for heating. They're hardworking honest families who are now suffering because of other peoples crimes.

Fuck it's bad...basically politicians have just looked out for themselves and the wealthy for decades, and now the "99%" are the ones that have to endure cuts. And the cuts are really surreal, as I said my friends didn't have enough money for heating.

Then again, the people are also to blame, but not all of them. My friend worked in the tax department of the government and he told me he saw thousands of tax declarations stating yearly incomes of 10K a year, even though those households had huge houses, 4 cars etc... But they don't do anything about these people. For decades the tax department have just marked these people as suspected tax evaders, and left it on the shelf.

For decades, these people, mostly middle class and up, have been effectively stealing from the government and country, and now even the honest people are being forced to move to the "wild" to grow their own food because they can no longer survive.

On top of this, the damn priests in Greece are rich as balls. Church is not taxed, and these priests take the money for themselves. About a decade ago there was a priest that crashed in his private jet and died. Well fucking deserved hypocrite thief.

Anyway, maybe I'm just venting. I'm gonna talk to my friend and get him to explain the situation better. He has a shit load of "inside stories" nobody knows of outside the country. Greece is the definition of corruption, and it's only starting to show now.

 
Boreed:
This. And it's the people suffering, not the politicians and rich doctors who caused the mess through corruption and lies in the first place. I'm part Greek and go there every summer as my father lives there. The shit is much worse and way deeper than the media shows. The amount of corruption is insane, and it's pretty much a police state.

This winter my friends didn't have enough money to pay for heating. They're hardworking honest families who are now suffering because of other peoples crimes.

Fuck it's bad...basically politicians have just looked out for themselves and the wealthy for decades, and now the "99%" are the ones that have to endure cuts. And the cuts are really surreal, as I said my friends didn't have enough money for heating.

What an idiot, do you really think that 1% of the population evading taxes can lead to severe economic crisis? It is the reckless spending directed towards the 99% that put Greece in deep shit. Read what you're writing! Your friend works at the tax administration and you say he doesn't do shit (e.g. not go after tax evaders, etc.). He's just another entitled loser blaming the rich.
 
englandwales:
It's also a question of generations .... they should be equally angry at the generations before them - those for whom paying taxes was practically voluntary and for whom cheating their way into the EU seemed to be a decision without repercussions (idiots).
tiger90:
Something interesting I've seen in my research of historical civil uprisings has to do with the age of the demographics of a nation. Typically whenever these uprising occur that enact change ... the largest demographic age in the country is between 15 and 35.
The above are excellent comments, and tie in to a larger sense of disrespect for authority we're seeing....they sold us out. I look at the older generation in the US and they've had enough money to wage non-essential wars, drain the life out of public systems and private business, etc... but now our and the next generation have to foot the bill??? I do agree that there is a MASSIVE amount of waste, but tax evasion in Europe has been elevated to a high art, Greece and Italy in particular. Here, people are afraid of fucking with the IRS, but over there people brag about not putting into the system. So, you end up with too much B.S. spending and subpar revenue. Greece just needs to start PRODUCING, SAVING, and WORKING.
happypantsmcgee:
So your argument is that its ok to evade taxes if you don't agree with how the money is spent? Does that mean ANT is posting from Prison?
This is just hilarious
Get busy living
 

[quote=UFOinsider] The above are excellent comments, and tie in to a larger sense of disrespect for authority we're seeing....they sold us out. I look at the older generation in the US and they've had enough money to wage non-essential wars, drain the life out of public systems and private business, etc...]

This is the tragedy of the Fed and too big to fail in the US, and it is something that anyone should consider when thinking about investing in global macro. The topics in my classes and with my peers are often about governments, businesses and their fundamentals. That you must really understand everything about the countries to which one is invested, the demographics, the cultures, the ability to cross borders, etc I'm sure hedge fund managers (classically depicted by Jim Rogers and Jim Leitner) with credible experience are attuned to this, but it definitely needs more attention in this sense rather than from people thinking "Hey, Chile is a great country to do business with, lets go buy some South American ETFs."

Btw, starting a Spain thread now that I think about it.

 
Best Response

I'll present the series of events, that led to it, and i'll let you decide who's at fault (politicians).

The euro was a political project. Make no mistake. The european powers that be wanted some form of political unification to stand up on a world stage against the other superpowers. Europe grew up in the shadow of WW2, the impact of the war is still felt today. For all these reasons, the dream of the Euro was born.

It essentially turned the EU (previously referred to, accurately as the EEC - european economic community), into one big financial nation. Instead of Greece being a separate country, it became a poorer area of the european nation. Germany benefited hugely because of its exports were held down in value by the weaker economies, and the weaker governments benefited by having Germany's credit card. Their politicians promised more and more to get elected and then....

the economic crisis stopped the money coming in. Governments couldnt borrow any more and the whole thing comes crashing down.

I dont feel sorry for a population that elects their own government. If people are handing out money and you're earning twice what the rest of europe earns, and you dont think there's anything wrong, reap what you sow.

 

As a Greek citizen, I believe that we are the ones to blame. Things are exactly as you described them, and we have done nothing (besides imposing taxes) in the past 2 years.

Of course people blame foreigners, the EU, Germany (and sometimes Jews), but I dont care what people who believe its their "right" to get a high salary and keep their job even if they dont actually work have to say.

Greece just gets what it deserves...

 

These are the same people that have cheated on their taxes for generations upon generations. Its a joke.

Read Boomerang.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
happypantsmcgee:
These are the same people that have cheated on their taxes for generations upon generations. Its a joke.

Read Boomerang.

I disagree. While indeed tax evasion is a major issue, would you pay your taxes if you knew that 10% of the population (not working force) works on the public sector, and the majority not only dont work, but make your life harder by demanding to be bribed everytime you have to deal with them?

I would prefer to let them starve, rather than pay their salary by my taxes..

PS I dont evade taxes, I am still a student..

 
SalGr:
happypantsmcgee:
These are the same people that have cheated on their taxes for generations upon generations. Its a joke.

Read Boomerang.

I disagree. While indeed tax evasion is a major issue, would you pay your taxes if you knew that 10% of the population (not working force) works on the public sector, and the majority not only dont work, but make your life harder by demanding to be bribed everytime you have to deal with them?

I would prefer to let them starve, rather than pay their salary by my taxes..

PS I dont evade taxes, I am still a student..

So your argument is that its ok to evade taxes if you don't agree with how the money is spent? Does that mean ANT is posting from Prison?

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
SalGr:
Personally I think taxes are wrong in the first place.

But at least mosst people who evade taxes, have worked for their money-unlike public sector employees who are actually stealing 100% of their income and contribute nothing (yes, if you have a salary, cannot be fired, and sometimes dont event go to work, your are a thief).

So no government employees earn their paychecks? You really aren't making any sense.
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

And I guess you get to decide this? Why don't they pay half of their taxes since, as you say, half of public employess have earned their pay.

This is an absurd argument. The idea that you don't pay taxes because you think people are being paid improperly is patently ridiculous.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
happypantsmcgee:
And I guess you get to decide this? Why don't they pay half of their taxes since, as you say, half of public employess have earned their pay.

This is an absurd argument. The idea that you don't pay taxes because you think people are being paid improperly is patently ridiculous.

Its not absurd if he has come to the conclusion that the Greek government serves itself instead of its people. People who make the choice to avoid taxes need to make sure they are prepared for the consequences.

Remember, we threw tea off a boat because we didn't want to pay for a war fought on our turf.

 
illiniPride:
happypantsmcgee:
And I guess you get to decide this? Why don't they pay half of their taxes since, as you say, half of public employess have earned their pay.

This is an absurd argument. The idea that you don't pay taxes because you think people are being paid improperly is patently ridiculous.

Its not absurd if he has come to the conclusion that the Greek government serves itself instead of its people. People who make the choice to avoid taxes need to make sure they are prepared for the consequences.

Remember, we threw tea off a boat because we didn't want to pay for a war fought on our turf.

You should do some research on why that tea was actually thrown into the harbor. The real reason was that the British Government decided to allow the East India Company to sell its tea without tariffs thereby making it cheaper than the tea sold by America's elite that they were able to smuggle into the country which wuold have meant a hit to their bottom line.
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

Something interesting I've seen in my research of historical civil uprisings has to do with the age of the demographics of a nation. Typically whenever these uprising occur that enact change (either violently through revolution, or gaily through Woodstock), the largest demographic age in the country is between 15 and 35. This was true in the US during the 60s, Egypt/Libya last year, the American Revolution, French Revolution, Cuban Revolution, etc etc. There are other reasons as well that lead to these issues, but it's a correlation that is something to take note of.

 
PuppyBackedSecurities:
funny, you would think democrats would see what happened to greece and stop pushing for entitlements... but they don't

too easy to win elections by giving away other people's money I guess

Exactly!

It boggles my mind how socialist Europe is falling apart because of their entitlements and you get the occupy movement asking for hand outs.

After reading "How an Economy Grows and why it Crashes" by Peter Schiff I realized how we're getting scammed.

http://www.amazon.com/How-Economy-Grows-Why-Crashes/dp/047052670X

 
PuppyBackedSecurities:
funny, you would think democrats would see what happened to greece and stop pushing for entitlements... but they don't

too easy to win elections by giving away other people's money I guess

Can you post more often? I really enjoy seeing that little puppy's face, he's so cute.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
Oreos:
PuppyBackedSecurities:
funny, you would think democrats would see what happened to greece and stop pushing for entitlements... but they don't

too easy to win elections by giving away other people's money I guess

Can you post more often? I really enjoy seeing that little puppy's face, he's so cute.

I agree. We should start the puppy avatar movement.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Obviously there have been lots of things going wrong in Greece (massive tax evasion, retirement benefits to dead people, enormously large number of state employees etc.), but I wouldn't say it's entirely the politicians or 1%'s fault, as everybody pretty much knew what was going on, but just ignored it for their own benefit.

The problem with the European Union in this case is that it isn't completely integrated, as during the foundation lots of countries were reluctant to hand over control, which is why only a couple of years back they managed to work toward something like a representative for foreign affairs representing the European Union as a whole. So now after the Greek crisis countries are willing to hand over part of their fiscal authority to the EU to avoid a similar mess in the future, but before then nobody except the Greek government really knew what poison they were making over there.

Now that the shit hit the fan the Greek obviously don't want get fined for tax evasion, put up with lower wages or getting fired as one of the many useless state employees, and since the future of the EU hangs in the balance with Greece being the factor that could easily tip it over, they theoretically have lots of leverage there. To anybody thinking clearly it seems insane, I for myself as an outsider (not Greek but German :P) would rather put up with lower wages and "survive" than to fall into anarchy if the EU goes bust. But for them it may seem like they got nothing to lose, so why not hold the EU hostage and demand a bailout on their owns terms.

 

If your counter parties give you rope and then an outlet (or at least a strong negotiating positin) in the downside, that's called a good trade. Morality is irrelevant (ethics, being norm based, might be). Y'all need to work on putting yourself in the other guys shoes of your want to understand their actions and make money.

 

While the Greek situation clearly can't be understood in the clichéd 1%/99% paradigm, some within Greece believe it can be understood in a c.10%/90% paradigm. The benefits of public sector spending were in no way distributed universally and evenly; it was generally targeted around specific groups whose votes politicians wanted to secure. I think it is for this reason that a lot of particularly young people within Greece feel that universal cuts are 'unfair'. In other words, not everyone has been equally in receipt of the benefits, so why should the cuts be distributed in the same manor?

Another factor I think is the feeling of an obligation by the EU to help Greece out to a greater extent than they have been doing. Germany for instance, has likely benefited significantly from the benefits of a competitive currency vis a vis the euro, something which can be attributed largely to the weaker economies of Greece and spain etc. There is therefore the feeling, justified or not, among certain stratas of Greek society, that Germany and other strong countries that have benefited from the weakening of the currency are indeed obligated to offer help to Greece - and more than they are currently doing.

Into this dynamic I think you have to consider the traditional credit/debtor relationship. Banks were castigated for offering excessive (think 100+% LTV) mortgages and hailed as irresponsible - again rightly or wrongly, there was very little criticism of the average 'working guy' (here in the UK anyway) for borrowing more than they could afford to buy a house. In the Greek situation, for whatever reason, the situation has been reversed; there has been little criticism of lenders for allowing Greece to borrow such a huge amount of money, and a huge amount of criticism of Greece's irresponsibility. I think a significant number of people within Greece, based on the small number of Greeks I have spoken to, regard this as double standards.

The final point to throw into the mix is that Greece is running a primary budget surplus. Whatever the morals regarding the paying off of debt, there is a growing understanding that they are at present only borrowing to pay off their existing creditors. Aside from the mechanics of a default, and the inevitable sanctions and court orders this would bring - Greece knows that the bail outs they receive are not paying for their public services - just to service their debt. This is why a lot of people protest, they say well, why don't we just default, refuse to pay our debt, we will save ourselves all the repayments and we don't actually need the EU aid for services as we have a primary surplus. Clearly there are flaws with this approach (they could lose their eu aid, court cases, domestic banking exposure to greek sovereign) but the fact that people believe it to be a possibility makes people think that there is 'another option'.

All of this situation needs to be put in a broader context. Greece was poor, generally when you give poor people access to a lot of money, they tend to take it without thinking through the longer term consequences. Its not like they were being warned extensively at the time about their spending, this has only come about afterwards - and besides most other countries within the EU were doing a similar thing. If it was so obvious, they would not been lent money for so long. Equally your argument (OP) could be turned around as; 'what do these people expect, they make unsustainable loans to unsuitable debtors; time do put up/write them off. They have the gall to ask people already hugely poorer than themselves to make their situation even worse to pay their pensions, its supposed to be a 'european union/community'.

Just a disclaimer and to be clear, I am not presenting these arguments as being morally correct but rather to explain why some Greeks are protesting. It is not, as the OP has claimed 'Greek Society', but a number of people within Greece; homogenising the protesters and country in the way you have done isn't particularly useful and probably why you can't understand why they are protesting. AGAIN JUST TO BE CLEAR, I AM NOT SAYING THEY ARE IN THE RIGHT/MORALLY CORRECT, I AM EXPLAINING WHY I THINK SOME GREEKS ARE PROTESTING. I am not Greek or part Greek and have never even been to Greece on holiday.

Of course this post ignores the possibility that the thread was a thinly veiled invitation for some Greek bashing rather than a genuine attempt to understand their motivations - in which case go ahead.

 
anon56:
Just a disclaimer and to be clear, I am not presenting these arguments as being morally correct but rather to explain why some Greeks are protesting. It is not, as the OP has claimed 'Greek Society', but a number of people within Greece; homogenising the protesters and country in the way you have done isn't particularly useful and probably why you can't understand why they are protesting. AGAIN JUST TO BE CLEAR, I AM NOT SAYING THEY ARE IN THE RIGHT/MORALLY CORRECT, I AM EXPLAINING WHY I THINK SOME GREEKS ARE PROTESTING. I am not Greek or part Greek and have never even been to Greece on holiday.

Of course this post ignores the possibility that the thread was a thinly veiled invitation for some Greek bashing rather than a genuine attempt to understand their motivations - in which case go ahead.

Silver Banana to you sir. Thanks for your explanation.

Would the scenario of US families strategically defaulting on their home loans even though they could pay them, be a fair comparison to the Greek situation? Sort of?

I genuinely wanted to understand the mind set of the Greek citizens. At the end of the day they are in a rock and a hard place. Nevertheless, if I were in their situation I still don't think I would have the similar mind set as those who protest.

 

anon56: people new to wake the fuck up. Germany has only benefited from a weak Euro since shit hit the fan in summer 2011. Saying that the Euro has been weak all along since 2002 is akin to saying that markets foresaw the troubles of peripheral Europe - they did NOT.

Granted, Germany's exports are benefiting right now, but with the bailouts the net benefit is unclear.

 

"Germany? (The hand that feeds you)"

Who is Germany feeding? No bailout money is spent in the Greek economy. The money goes towards the debt and interest rates.

The Greek society has a main problem. It's overly individualistic and very family orientated. The concept of taxation is not conceived by some citizens who believe they are entitled to 100% of their income- just because they don't like sharing (it all has to stay in the family).

 

I think either you have misunderstood what I have said, or I have not made it clear enough.

The argument is that the euro is and has been weaker than a standalone German bund would have been at the same point in time, even prior to summer 2011. The argument you have presented is the one I generally used, but the counter I have come up against has always been that even when the euro was strong(er) it was still not as strong as a standalone German bund would have been. Now I am not sure if I necessarily agree with this, given there were some years of pretty strong non-german european growth, but it is tough to categorically disprove. I guess I should have stated explicitly that in this context the word weak was relative to the strength of a hypothetical German currency at the same time. Also there is the fact that even if it didn't necessarily work out like this - it was likely an objective of successive German governments and so if they were prepared to reap the rewards, should they also have to accept the dangers?

 

The main problem for Greece is that its tax collecting agency is very corrupt. They take kick-backs so they ignore how much people need to truly pay. I don't remember where I heard it but Greece loses millions of dollars every year due to tax fraud that is caused by this problem. People just don't want to change they way they life, and how things are. We are dealing with a similar problem in the USA with Medicare and SS costs which will soon become almost all of the government budget. People need to accept the fact that somethings need to be cut back, that sacrifices need to be made.

 

The people in Greece have 0 faith in the political system as it is corrupt and has been corrupt since the junta. Greece has a terrible education system and as a result most Greeks do not really understand the mess they are in. It is not easy to live off a salary of 300-600 dollars a month.

 
melvvvar:
let me break it down for you:

the greek citizen doesn't give a flying fuck what you think.

You've become pretty useless around here.
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

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