Home Greek news economy Austerity Cuts Greek Household Income 38%

Austerity Cuts Greek Household Income 38%

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Greek householdThe severity of Greece’s crushing economic crisis and austerity measures demanded by international lenders has drastically cut the incomes of more than 90 percent of Greek households, with an average drop of 38 percent.

The startling numbers that illustrated how bad the crisis is for most Greeks, apart from politicians, the rich and tax evaders, came in a survey by the Marc company.

It also found that more than 82 percent say their total incomes amount to 25,000 euros ($33,900) or less because of big pay cuts, tax hikes and slashed pensions, the news agency Bloomberg reported.

Sixty-six percent of respondents said there total income doesn’t exceed 18,000 euros, ($24,100) and only 2.5 percent say they make more than 40,000 euros, ($53,570) according to the study for the Small Enterprises’ Institute of the Hellenic Confederation of Professionals, Craftsmen and Merchants.

The government keeps imposing austerity so that the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) will keep rescue loans coming. That has worsened the country’s recession, now in its sixth year and created a record 26.8 percent unemployment.

In November, 2012 Greece’s Parliament approved tax increases and spending cuts demanded by creditors for the release of funds required to keep the country solvent but exempted Parliament workers who threatened to strike if their pay was cut. The measures have been so tough that some 40 percent say they can’t pay their bills on time, mostly because of big tax hikes that are taking 40 percent of their income.

The country’s Gross Domestic Product (GDP) has shrunk by a fifth since Greece went into recession in 2008. Retail sales dropped 16.6 percent in November from a year earlier and supermarket sales fell by 500 million euros ($669 million) last year as people have cut back severely on spending, even on food.

Clothing, eating at restaurants and gifts are the categories in which most households say they have cut spending “significantly,” followed by heating, travel and recreational activities such as going to cafes, bars and the cinema. People have cut education and health spending less.
The survey of 1,207 households was conducted between Dec. 10 and Dec. 19.

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  • Alex

    “Austerity Cuts Greek Household Income 38%”

    The title should say: “Economic myths cut Andy’s credibility by 38%”

    Austerity isn’t cutting income. Austarity is balancing budgets.  We collect x dollars. Then spend x dollars. Not we collect x dollars then spend x + y dollars (as we did for years… which led to this situation).

    Its unfortunately some of our leftists continue to think some think foreign tax payers and creditors (or other Greeks) are obligated to fund their lifestyle rather than focusing earning their wealth through their own efforts.

    Wealth is primarily created by people not through government wealth distribution scams. If the Greek people want a better economy its up to them not waiting around from handouts from others.

  • Alex

    We should be helping other Greeks but the context of that help matters.  The Greek Reporter founder also volentarily started “Hire a Greek” website. That was is a great idea. Its helping other Greeks without being about handouts.

    On the other hand, giving money to ignorant rioting anti-business anarchist and communist extremists  demanding money from other Greeks vis-a-vis state force is not helping either them or our country.. This is like giving gifts to a child having a temper tantrum to quiet them down. Like Pavlov’s dog it is conditioning them to believe their irrational behavior will be rewarded (which amounts to rewarding extortion)

    Altruism is what it is. No Greek owes another Greek anything. If we give to another Greek it should be from our hearts. Help is best directed at Greeks that appreciate it and feel shame and humility for it. It should not be directed at the selfish whiners demanding money.

  • Tzak12345678

    Whats the alternative..Bankruptcy…thats when we will really feel the pinch when we have a worthless drachma.

  • worldarts

    While Parliament is cutting Greeks income, these same MPs have not cut their salaries or perks yet at all… and not one of them in Parliament or their Party Members have been prosecuted for crimes against the Greek people!

    Example– WHY hasn’t Akis Tzahadsopolous been tried yet after a year waiting in jail (if he really is in jail) ?? Ha! I doubt it anyway knowing how this corrupt coalition government works! There is no Justice System in Greece.

  • worldarts

    Did you know that both “Monti” and Mario Draghi used to work for the European
    branch of Goldman Sachs who have been involved in every financial scam in the
    world since 1998? Draghi is a complete CRIMINAL and now head of the
    ECB???———— INCREDIBLE!

    Did you know that IMF’s Ms. Legarde is currently under investigation in France for taking $100 Million in bribe money from French gangster, Bernie Taipie to help Sarkozy’s last election campaign?
    She’s no better than the maid rapist Strauss-Khan. What kind of Criminals are
    heading and working at the EU Commission. ECB & IMF???

  • Louis

     Alex can you explain to us how you have been affected by the austerity measures?

  • Louis

     So austerity isn’t cutting income…hmmmm, wages are cut by 30% in the private sector…meanwhile DEH will be going up 45% by May, super markets have not lowered their prices, gas is 1.70 per liter, almost everything has become more expensive, and more taxes!….but Austerity does not cut household income…..

    What you don’t understand is that all that has been done has to go both ways….you cut wages, you make sure that prices drop. 

    It seems to me that you do not live in Greece and are clueless.  But it is easy to be across the other side of the world saying all these things and no experiencing them.

  • Louis

     He doesn’t know these things…it is obvious

  • archconcord

    Starving a people will eventually end in violence.

  • archconcord

    Austerity seems to mean forcing the poor of Greece to forgo food to pay for the German submarines that were bought wihtout their assent with borrowed Euros by bribed officials who siphoned off their cut and avoided paying taxes on their ill-gotten gains. Little wonder the young have decided to follow suit and rob the banks of their ill-gotten tax collections. What a disgusting mess.

  • http://profile.yahoo.com/OYG7TRHWU2AIDSI4M3B2PE2BHA Paul Johnston PhD

    This new Greek government is sadly lacking in moral integrity and honorable character, simply by the fact of having Mr. Venizelos involved who hid the Legarde List in his home for two years.
    This is a crime and called fraud in any free country, and to have him as one of the  leaders of the coaltion government shows corruption is still on-going and openly allowed at the top echelons.

  • Cypriot

    Watch this: http://www.debtocracy.gr/indexen.html

    It’s even got English subtitles so there’s no reason for you not to understand it. If you honestly think we can pay €350 billion, you’re living on another planet.

  • Alex Prime Minister of Greece

     Alex is an economist!  He knows!

    I have seen the documentary! Very good!