Wednesday, April 28, 2010
Europeans Fear Greek Debt Crisis Will Spread
Who created this crisis? Who should bail the PIGS countries out?? What happens if they do NOT get bailed out???
Subscribe to:
Post Comments (Atom)
skip to main |
skip to sidebar
Welcome. This is a blog dedicated to the students enrolled in the CSHS AP Economics classes. Click on the title of the article, read, and click comment.
The prime minister of Greece is responsible for this crisis, as he hid the size of the country's ever-growing deficit.
ReplyDeleteThose countries which are united under the Euro are obligated to bail out the PIIGS countries because if they do not, their own economies may fail (since they all rely on the same standard of currency).
Other countries lost faith in Greece because of this crisis, and as a result, the economies of the PIIGS countries are failing. This will countinue unless there is a bail out.
This crisis was developed by lack of funding by the market to finance the spending done by the government. The government needs to spend in order to keep the economy going, but it also needs to receive a return to be able to spend more. The higher taxes and proposed taxes on Greece's doctors are not sufficient to finance the estimated 150 billion euro debt.
ReplyDeleteAs for the PIGS countries, they need to be bailed out by the members of the European Union because if those countries fail, it will have a strong negative impact on the success of the remaining countries on the Euro.
The prime minister and the government of Greece caused this crisis. The countries who share the Euro as their currency should bail them out. If the countries that use the Euro do not bail them out, they have the possibility of their economy failing too.
ReplyDeleteThe crisis started with a recession, and then the situation got worse as the right expansionary policies weren't put into action, so I say it has to be initially the government/policy maker's fault. NOW the Greece government is trying to spend their way out of the depression, but their budget won't allow it, they can't raise taxes because it'll slow the economy further, and no one wants to finance them and add to debt.
ReplyDeleteAs to who should bail them out, it can't be each other. Greece, Spain, Portugal, the PIIGS countries are all in trouble. We need the sronger powers, Britain, Germany, China, even the U.S, and especially the European Union, should all contribute to helping them out.
No one can afford for those countries' economies to collapse, because it just sets them into sever poverty, those countries can't afford to trade, and the world economy suffers as a result.
I believe that it was the prime minister and the governor of Greece that cause this economic downfall of the PIGS countries. As for who should bail them out? I believe that it should be the European countries that should bail them out, but I also believe that we need to also help in a way. If we let these countries' economy crash, then as an end result we will crash too because there will be almost no one left to trade with, with will mean a fail in our economy as well.
ReplyDeleteIf these countries fail, we will loose our trading partners. But do we really need any more problems on out hands to take care of? Do we really need more people to bail out and take care of?
ReplyDeleteThe prime minister is at fault. Proper expansionary policies were not carried out. It is hard to say whose responsibility it is to bail the PIIGS countries out. I agree with Erika that those countries united under the Euro should take some action, but I also think we should help. I know how hard it is for us right now, but it is hard for everyone. We have been doing bail-outs left and right; however, our entire world economy is linked, and when one country fails, we all fail. We cannot let these countries go under.
ReplyDeleteIf they do not get bailed out, the entire world economy is in even more trouble. There would be no trade.
As aforementioned with everyone else's responses, the fault of Greece's economic downfall can be placed on the shoulders of the prime minister, who was irresponsible in his role of enacting fiscal policy to regulate Greece. Now Greece, in concordance with the rest of the PIGS countries, must come to rely on the rest of the countries under the EU, and if these other countries are dragged under the water, never to resurface, by the PIGS countries, it takes a huge chunk out of the global economy and its trading industry, for there are many fine materials and items exported from Europe and it also serves as a safe harbor for goods-ships traveling great trans-Atlantic distances. So, in a way, you could say that is the responsibility of all the world's countries to help bail-out the PIGS countries. But maybe economic volatility, which seems to be spreading like an incurable virus across the global economy, will lead to an ultimate reset, which would of course mean short-term chaos, but I think it would also mean long-term stability.
ReplyDelete