Causes of Inequality and Poverty in Greece
Causes of Inequality and Poverty in Greece To understand the causes of inequality and poverty in Greece we have to look back to its joining the European Union in the ’80s and what followed. Greece became the 10th member of the European Union on Jan. 1, 1981. At this point, Greece was in good financial shape and had very few economic problems. The 30 years following joining the European Union, Greece spiraled into a debt crisis that was caused by heavy government spending which led to a slowdown in economic growth. Months following joining the EU, in October of 1981, the Panhellenic Socialist Movement (a political party) came into power and for the next three decades, they alternated being in positions of power with the New Democracy Party. This constant change in power and the want to please voters led to a troubled economy, “In a continuing bid to keep Greek voters happy, both parties lavished liberal welfare policies on their electorates, creating a bloated, inefficient, and pro...