Imagine this scenario If you will. You are a fresh
engineering graduate, finally entering the working world after 5+ years of
tireless study. You are eager to make
your mark on the world. You open that door to the real world and you are
shocked at what you find waiting for you; 58% unemployment among your age group
and a mandatory starting wage of 450 euros a month.
For
many youth under 30 in Greece this is a reality.
With
the implementation of the Euro in Greece in 2002, Greece was effectively tied
to pricing dictated by the wealthier and more affluent Northern European
countries. As opposed to other countries
like say, Mexico with their own currency, Greece was forced into following the
prices set across Europe. This wasn’t so much of an issue when the Banks were
gleefully pumping billions into a system that could not withstand the high
costs of borrowing, but now in the midst of the worst recession seen in Greece
since the 2nd World War this is having a serious effect on the
population.
In
exchange for one of the myriad bailouts given to the Greek Government, the
government has been forced by the troika (EU, IMF, ECB) to implement an entry
level wage of 450 euros to any labourer under the age of 30. Remember though,
the cost of goods and services are roughly standard across the Eurozone. For
example, a Playstation 3 in Germany would cost the exact same amount as a
Playstation 3 in Greece.
So
what does 450 Euros a month get you? Let’s break it down. We will assume you
are living on your own, so you will need to rent a small apartment. First, you will need 200 euros minimum for a small bachelor’s suite measuring between
200 and 315 square feet. Right away you are down to 250 euros for the rest of the month. Let’s assume you have to bus
to work as you cannot possibly afford a motorcycle, scooter or a car. Transit in Greece costs 1.40 euros which you
need to pay twice a day to get to and from your job. This is 2.80 a day which amounts to roughly
84 euros a month. Let’s be generous and
not include weekends. That’s 76 euros
a month. We are now down to 174 euros.
Electricity prices are outrageous in Greece, (odd considering the abundance of
sunshine, wind and other clean forms of energy) so you roughly pay 50 euros a month for electricity. We
are now down to 124 euros a month.
We’re really stretching it now, so let’s assume you do not pay for heating to
save some money. A loaf of bread at a
bakery costs 50 euro cents a day. So
that’s 15 euros a month. 109 euros are now left to subsist on. A
coffee a day costs 1 euro, that’s 30 euros a month. We are now down to 79 euros with no nutritional value aside from simple carbohydrates
from a single loaf of bread. Food is expensive in Greece as well. 500ml of milk costs about 1.20
euros. Since we’re barely making ends
meet we’ll buy one every two days which equates to 18 euros a month. 61 euros are now left. Assume we can
somehow live on 1 euro (you can’t) a
day for food and we are now down to 31
euros. Remember, we have no heating, have not spent a penny on clothing and
no communications such as internet, a telephone line or a television. Any of these extras added on, or even an
extra euro a day for food will bring you into the red.
There
is little recourse for the youth of Greece at this point in time under the
current system. This wage is static so you will most likely be forced to work
for 12-15 (lazy Greeks right) hours a day in order to keep your job. If you
don’t like it, the employer can easily fire you as there are thousands of
others looking for work. The punch line is that the current clowns in the Greek
parliament wax lyrical about how terrible things will get if Greece leaves the
Eurozone. Samaras and his cronies like to fear monger and tell people how there
will be no oil, no electricity and no health services if Greece were to leave
the Eurozone. But I just broke down a very basic cost of living for a young
graduate above and there is no money for medications or heating there
either. So we should objectively
question the statements made by those in parliament of a potential doomsday
scenario were Greece to leave the Eurozone. At least under the drachma the
Greeks could control their own destiny.
Remember,
this is not a fabrication. This is reality. I have lived in Greece and I know
and have seen the cost of living there. People are starving and youth
unemployment is at 58%. At least in the above scenario, the poor sap has a job.
If you take anything out of this article take this. Too many times we see an
event happen overseas and we do not take into account the human aspect of it.
We throw terms around like socialist, centrist and conservative and attempt to
attribute blame while the human cost goes unmentioned. While this is an economic issue spawned from a
plethora of issues, the human cost cannot be understated. While bankers,
financiers and politicians sit around a table throwing out numbers and useless
statistics, people in Greece are slowly starving to death.