Our dangerous consumer dream
The deterioration of the country’s current account balance while productivity and investments remain stagnant will mean serious problems for our economy. It shows that Greeks consume more than they produce and that their spending power derives from their savings, the underground economy or borrowing. And consumption without a substantial restructuring of the economy cannot last. The Greek economy’s problem is one of production. We have a huge and unproductive public sector which squeezes money out of everyone. We have a private sector which, for the most part, does not aim to boost productivity but concentrates on satisfying the demands of its favorite client, the state. Our economy has distorted foundations which undermine all attempts at productivity. We are witnessing an alarming increase in borrowing for the fulfillment of consumer needs. As demand cannot be satisfied by domestic production, we boost our imports. The figures churned out regularly by official organizations hide serious dysfunctions in the Greek economy, problems that will lead to poverty in the future. And if the necessary structural reforms to the economy are not carried out, the consumer dream which is currently straining our current account balance will explode in our faces.