450 Euros

            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 2^nd 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.