Photo courtesy of Scott Gries/ A&E Networks.Greece had the rest of the European Union groaning this week after new polls showed some Greeks in favor of overturning the measures put in place after their first financial crisis to prevent future default on the country’s borrowed money.
Wait, what? What does that even mean? Where did this all start?
Throwback to the global financial crisis of 2008. Greece was hit hard. The country began borrowing tons of money (to the tune of a cool 45 billion euros) from the EU to bail out its economy. But they weren’t paying it back on time and the country’s debt rating plummeted, meaning there was a high likelihood Greece would just not pay it back. European stock markets felt the repercussion and declined as a result.
Then Greece announced it would implement a series of austerity measures to prove to creditors they could handle a three-year, 110 billion euro loan.
Austerity equals spending cuts, tax increases, and any short-term government policy to reduce budget deficits.
Think back to your freshman year introductory macroeconomics classes. Remember how government spending tends to help the country’s economy in the short run? Hence the constant cry for “government bailouts.” Well, implementing these austerity measures almost always increases unemployment and generally upsets people.
Greece did get the second bailout from the EU. But the bad news is some Greeks aren’t down with the austerity measures put in place in 2010, and some of those same Greeks happen to be in power right now in the Legislature.
And even after everything the EU has done for Greece, now Greece may leave the Euro. Cue EU panic and the record nine-year low of the value of the Euro.
Basically Greece is ruining it for everyone.
Now let’s translate this into pop culture.
Imagine the Abbey Lee Dance Company Junior Elite team, featured on the hit Lifetime show “Dance Moms,” as Europe.
Picture Greece as a Nia trying to break off from the team because she thinks she doesn’t need them. Nia is an awesome member of the cast, but she doesn’t have the stuff to make it on her own. She usually gets the fewest solos, though her mom thinks she deserves one every competition.
Now think of Nia’s mom as the people of Greece. She firmly believes to her core that Nia could make it. But as we all know, Nia’s mom is kind of crazy.
The fact is, if Nia left the team, they would be screwed for their next competition. It would take them a while to bounce back, though as Abbey always says “everyone’s replaceable”, and on paper they could technically be better off without her.
But Nia’s pretty high profile now, thanks to the show. Her leaving would be a scandal and likely the show and the team wouldn’t ever be able to get back to the level they were at.
Nia has a lot of potential and while Abbey always yells at her, she’s been there from the beginning and it would feel weird if she left. She’s part of the team. And considering how much time Abbey (let’s call her the EU) has invested in her, it would feel ungrateful if she left.
Greece too has been there from the beginning. And, you know, the country’s pretty high profile. The EU would be screwed in the short run if Greece leaves, mainly because the euro will sink in value. Already analysts are claiming the dollar will be worth more than the euro by 2018.
Moral of the story: don’t leave the EU, Greece. Stick to your austerity measures and get yourself out of debt without bringing everyone else down with you.
Reach the reporter at enichol3@asu.edu or follow @LizNichols4 on Twitter
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