Economic Crisis Getting Worse

Since America’s most important financial institute went bankrupt in 2008, society has been struggling to survive a severe economic crisis. People cut down on personal expenses, hoping for the storm to pass, but the recession seems to be far from diminishing. In fact, it’s getting worse since Greece’s economy started suffering; Greek debt grew by 40% in three years while the country’s production rate dropped alarmingly.
The reason for all of this goes back to when the economic crisis began in 2007, because people couldn’t pay back loans, causing banks all over the world to declare bankruptcy. As a result, a recession was generated, thus inducing people to save money and prepare for what was in store.
Consequently, Greece’s tourism-based economy was greatly affected by the sudden lack of tourists, admitting that tourists are undoubtedly rare during a recession. Therefore, Greeks took loans that they couldn’t pay, thus generating a new series of bankruptcies amongst European banks.
As a result to the crisis, jobs will evidently be lost and so the government will get fewer taxes. Therefore, the budgets for healthcare, education and retirement pensions will be reduced. There will be more conflicts between bosses and employees over salary, which might eventually cause strikes, like the one that took place at Canada Post this year. Also, riots and demonstrations could occur, similar to Montreal’s “Outraged” camping in front of the city’s stock market.
Indeed, all of these consequences are certainly due to the economic crisis getting worse and Greece’s economy being disastrous, but the solutions to this problem are less certain. Nevertheless, Greece’s government could try creating jobs by starting new construction works and encouraging the population to buy only from local sellers. Still, if Greece’s economy doesn’t get back on track soon, the world could be living through one of the most serious recessions that it’s had in a long time.

