Bill Mitchell: The EU pronouncement of a Greek success ignores the reality

1. Real GDP has shrunk by 23.9 per cent since the crisis began and has been stuck around that mark since 2012. There has been virtually no growth at all since the trough was reached in the December-quarter 2013.

2. Private consumption spending is now by 24 per cent lower than it was when Greece entered the crisis. It remains below the level of the June-quarter 2012 and has been static for the best part of two years.

3. The decimation of Greece’s productive capacity is on-going.

4. In the September-quarter 2008 (the peak employment quarter before the crisis), the ratio was 49.2 per cent. In the March-quarter 2019, the ratio was at 41.8 per cent. Had the ratio remained at 49.2 per cent, total employment would be 669 thousand larger than it currently is – that is, 17.5 per cent higher.

5. Total employment has fallen by 825.6 thousand (17.8 per cent) since the September-quarter 2008 peak.

6. Greece’s working age population has declined over the period from the September-quarter 2008 to the March-quarter 2019 by some 314.4 thousand (or 3.4 per cent) – this includes the massive ‘brain drain’ where skilled workers have left for other nations.

7. Unemployment rate is still at 19.2 per cent.

8. This is a massive demand-side induced Depression that Greece has been dealing with – deliberately inflicted and persisted with by the Troika using the so-called socialist party, Syriza as its puppet.

9. There is no way that a unilateral exit would have been as costly as this catastrophe.

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