Sunday, March 7, 2010
Greeks Back Papandreou Even After Austerity Moves, Poll Shows
As we have discussed in class, exercising budgets cut either by raising tax or reducing government purchases is not an easy thing for the government to do as it is usually not favored by the public. Although the contractionary fiscal policy has prompted several walkouts from the labor union, a majority of Greeks still support Prime Minister George Papandreou even after he has announced 4.8 billion euros ($6.5 billion) in new budget cuts, a poll shows. Perhaps the fact that there are tons of articles around describing the difficulties faced by Greece and what the country has to do to obtain external financial assistance helps the public to understand the reasons behind such policies.
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While the fact that there are numerous articles around describing the situation in Greece it still does not make it easier for those people who are having to deal with the over four billion euro tax cut. The people of Greece feel that they shouldn't have to pay for things they feel they didn't contribute to.
ReplyDeleteFrankly speaking, in some degree, it is understandable that Greeks support the new policy cutting government spending and increasing tax. Since, even people who never learn about Economics probably realized the former interests of its government debts was too high and it has already caused a big problem to their country, especially after reading recent huge reports which concerns on this issue. Therefore, it is reasonable to Greeks to support their governments.
ReplyDeleteThey have a really huge deficits. Cut the government spending is indispensable. The article said the majority support Papandreou but a lot of people still protest. And majority predict a social unrest. This reduction in spending include cutting bonus-salary, wages and increase tax rate; if it happened to us, I am sure everyone feel the same way. We accept it unwillingly.
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