Macroeconomics Commentary

[Zeppy]

Hey all,

I'm doing my commentary on Greek unemployment (http://www.telegraph.co.uk/finance/financialcrisis/9986806/Greek-unemployment-hits-a-fresh-record.html)

As of now, I think I'm going to talk about how they're in a state of recession, how seasonal employment is inefficient for the long run, and how the Government needs to revitalize business through spending, and perhaps cutting taxes.

Does that sound okay? Also, does anyone know the actual reason for the unemployment in the first place? I scoured google but couldn't find a solid response.

Thanks,

Zeppy

[difiCa]

Seems decent, but in terms of leaving room for evaluation in your 750 words I would go with only one or two of the themes you suggested. Also, you might consider the extent Greece would be able to finance increased government spending amid austerity measures that are binding. It could give you better marks than the less-than-unique approach of considering problems with unemployment. But in the end, it's your choice.

Unemployment in Greece is a relatively complicated matter, but in a nutshell: The Greek government was caught during the unveiling of the financial crisis for having assumed loads more debt than public figures showed. Creditors (EU, for example) started imposing austerity measures on Greece to prevent it from going bankrupt, causing a need to cut public sector employment positions along with all other government spending. In addition, business confidence is in shambles, and combined with the generally poor economic climate, private sector jobs are scarce too. Therefore, 1+1=2, and unemployment is high.