Shocking austerity: Greece’s poor lost 86% of income, but rich only 17-20%

[Katashi_itto]

Greece’s unbalanced austerity and drastic increase of poverty. The poorest households in the debt-ridden country lost nearly 86% of their income, while the richest lost only 17-20%. The tax burden on the poor increased by 337% while the burden on upper-income classes increased by only 9% !!! This is the result of a study that has analyzed 260.000 tax and income data from the years 2008 – 2012.
According to the study commissioned by the German Institute for Macroeconomic Research (IMK) affiliated with the Hans Böckler Foundation:
– The nominal gross income of Greek households decreased by almost a quarter in only four years.
– The wages cuts caused nearly half of the decline.
– The net income fell further by almost 9 percent, because the tax burden was significantly increased
– While all social classes suffered income losses due to cuts, tax increases and the economic crisis, particularly strongly affected were households of low- and middle-income. This was due to sharp increase in unemployment and tax increases, that were partially regressive.
– The total number of employees in the private sector suffered significantly greater loss of income, and they were more likely to be unemployed than those employed in the public sector.
-From 2009 to 2013 wages and salaries in the private sector declined in several stages at around 19 percent. Among other things, because the minimum wage was lowered and collective bargaining structures were weakened. Employees in the public sector lost around a quarter of their income.
http://www.keeptalkinggreece.com/2015/03/20/shocking-austerity-greeces-poor-lost-86-of-income-but-rich-only-17-20/

[brooklynite]

1. Does anyone have a solution?

Reminder that the austerity program came about because Greece already had money problems, and one of the biggest was a high tax evasion rate at all income levels. If they can't collect revenue, they can't pay back loans OR pay for Government services.

[KingCharlemagne]

3. A socialist revolution that expropriates the property and wealth

of the top 1% and puts them to work serving their communities?

Behold the failure of capitalism! Time for a new model.

[brooklynite]

5. Because Socialism has such a great track record?

...and if your threat is to steal the assets of a portion of the population; how do you keep their assets siezable while you're drafting the legislation or overthrowing the Government?

[Betty Karlson]

9. Socialism: nope. But how about Social-Democracy?

It lifted most of Western-Europe out of poverty just after WWII...

[brooklynite]

11. Greece has a Social Democracy; problem is they can't collect taxes to pay for it.

[Betty Karlson]

12. That problem is called corruption.

It does not reflect on the merits of the socio-economic model.

[KingCharlemagne]

13. The land and productive assets of Greece are not going to get up and

walk away under threat of proletariat revolution (although their landlords may well). Socialism has actually worked out pretty well for the people of Cuba, come to think of it: higher adult literacy rates and lower infant mortality rates than under Batista. But you new that.

[brooklynite]

18. Indeed I did...it's always easier to implement policies without pesky things like Democracy

But you knew that

[think]

20. Not gonna give Goldman Sachs any of the blame huh....

[sub.theory]

8. Pure Fantasy

That doesn't in any way solve the problem of a failed state unable to compel its citizens to pay taxes. How will your proposed socialist utopia pay for itself?

[KingCharlemagne]

14. My, aren't you precious? The only ones who won't get paid are greedy German, American

and (to a lesser but still significant extent) French bankers and bourgeoisie. Here's the sound of the world's tiniest violin mourning for them.

[sub.theory]

19. A duck and weave

You aren't saying anything about where revenues will come from. It's just emoting about getting revenge on the bourgeoisie. You do realize that socialist states require revenues too, right?

[The2ndWheel]

17. It's like our environmental issues

Everybody wants more for less.

[abelenkpe]

2. K&R

[Jim Lane]

4. It's shocking that the rich lost that much.

They must not have had very good lobbyists. Couldn't they have hired some former government officials to get themselves a better deal?

Greece may be the birthplace of democracy but their rich people could obviously learn from our rich people about how a "democratic" system works.

[Doctor_J]

6. not that shocking. our "recovery" here went more than 100% to the rich

They win on both ends. Every time.

[lonestarnot]

7. Not fucking funny how that always seems to work.

[Romulox]

10. USA's rich lost nothing in the government's bankster bailouts. Our poor were devastated.

[dembotoz]

15. Kinda sounds like an extreme form of walkers wisconsin

Drive down wages and worker rights
Increased taxes and benefits cuts for the middle and lower class
Rich get away Scott free

Obvious Greece much much worse off but this is instructive

[dawg]

16. Greece needs to get off the Euro so it's currency can devalue.

There would be more short-term pain, but the healing process could begin.