Dr. Periklis Gogas
Department of Economics, Democritus University of Thrace
The Greek debt crisis led to an unprecedented reduction in the country’s real GDP by 26.5%. This recession is one of the largest crises that the world economy has ever seen. For comparison, the Great Depression in the US in the later 1920’s resulted in a GDP reduction between 25% to 30%. Moreover, the Great Depression lasted for four years, while the Greek crisis reaches almost 8.
Simply stating that Greeks lost 26.5% of their income paints a gruesome picture. The true impact of the crisis is even worse. We compare current Greek real GDP to the one in 2009 just before the crisis. By doing so we are not taking into account a very significant stylized fact of every economy: growth. All economies show a strong positive trend in their GDP time series. This is the result of a steady growth in the factors of production, i.e. human and physical capital. The available human-working-hours increase due to population growth and the amount of physical capital stock also increases over time as a result of investment in fixed capital. Last but certainly not least, an additional very important factor for continuous growth is the improvement in technology. Technology significantly increases the productivity of both human and physical capital.
Continue reading What is the real cost of the Greek crisis?
Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, publisher of www.GavdosPress.com and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation.
For details go to: http://linkd.in/1AF7El7
We have been in the midst of a fundamental and historic shift of how the economies around the world develop. With the collapse of communism, the centralized and state control model of the economy has also collapsed. Other socialist State models, i.e., Sweden, UK before Margaret Thatcher, have also collapsed. What we have now, however, imperfect it maybe, is the model of the “Free Market.”
This shift is occurring in parallel with two other sociopolitical expressions:
- Smaller government, though the last couple years this seems to have moderated quite a bit, and
- the need, indeed the demand by our society to provide assistance, protection, and distribution of economic benefits a “fair” way
What we are witnessing is a major shift on “how we can fulfill our expectations of a humanistic society” while we keep the state’s interventions and control power at minimum.
Before I deal with this question (shift) let me digress in to a bit of history . . . . After all, how can a Greek get up to talk about such matters without referring to HISTORY .
Continue reading THE BUSINESS ENTERPRISE AND TODAY’S SOCIETY “Article 2”
Thomas Katakis, he is a business executive with 14 years of experience in 5 blue-chip companies. He has an impeccable lust for art, sailing, history, and traveling.
Athenian Democracy was an unprecedented social experiment that prevailed over time. But how come this system go so far? And was Athenian Democracy the epitome of empowering leadership?
Laying the Ground for People Power
We all know that democracy was born in Athens. Athenians were the civilized, the philosophers, the democrats, the dreamers that built the Parthenon. The daring sailors who travelled far and wide to infect others with their ideas and… their trade (after all, money speaks louder than words). But what we might not all know is that although the golden era of Athenian Democracy was associated with the leadership of Pericles (great marketing by the way), its foundations were first laid by Cleisthenes (508 BC). He was the one who broke up the system of political power based on nobility and wealth and handed it to the common people. That – quite literally – is what democracy means: “demos” means people and “cratos” means power. So to us Greeks the People’s Republic of China, for example, translates as “People’s People’s Power”. Sounds weird to us, but we’re not judging.
Continue reading History Funnel: How Athenian Democracy Made People Stretch Beyond Their Comfort Zones