OPINION

Symptoms of an ailing economy

Price hikes are a phenomenon worrying many people around the world, but Greeks especially are suffering from the higher cost of living, and low-income groups are feeling the pinch more than anyone else. It is a vicious cycle: Hikes in their wages are constantly undermined by the increase in the prices of basic consumer goods. It comes as little surprise that these people wonder what the government is doing to control this injustice. But we also have to understand that a high cost of living is like a fever: It is a symptom of a disease the economy is suffering. The Greek economy lags in terms of production, a great part of its gross domestic product (GDP) goes to fund counterproductive activities of the state sector, the Greek market does not have enough players and has restricted competition, and this all comes together to contribute to soaring prices. This is why lamenting the symptoms of the ailing Greek economy is not enough: We must constantly remind whichever government is in power that reforms are the only way to solve the country’s problems, even that of high prices.