Tag Archives: bailouts

It’s All Greek to Me

A confused Greek Prime Minister Alexis Tsipras holding a book entitled, “Basic Economics".
A confused Greek Prime Minister Alexis Tsipras holding a book entitled, “Basic Economics”.

Since the global recession of 2008, Greece’s economy has been struggling. While Europe suffered from a debt crisis following Wall Street’s crash, Greece was hit the hardest by the recession. In October 2009, Greece revealed the severity of deficit  (of about 317 billion Euros) admitting that it had been understated for years. Many countries in the European Union(EU) began to worry about the country’s economic status. Because the European Union shares economic responsibility of all states between every member state due to a shared currency, the state of Greece’s economy has a large effect on other countries in the EU. The EU decided to take preventative measures by refusing Greece’s requests to borrow money; however, without the ability to borrow, Greece spiraled into bankruptcy, so the International Monetary Fund, European Central Bank, and European Commission issued two bailouts for Greece that totaled about 240 billion Euros. Although, these bailouts did not come without strings attached. Greece was required to revamp its economy, instituting harsh austerity measures, deep budget cuts, and large tax increases. The lenders also wanted Greece “to overhaul its economy by streamlining the government, ending tax evasion and making Greece an easier place to do business” (New York Times). This crisis illustrates the importance of proper financial reporting and decision making in a nation.

While the two bailouts were supposed to help stabilize Greece’s economy, most of the money has gone to paying Greece’s outstanding loans.  in July of 2015, Greece’s economy was in a dire situation and its relationship with the European Union was in a fragile state. Greece’s Prime Minister Alexis Tsipras has been unable and unwilling to make many reforms that were necessary for a successful economic reform. They have made no reforms, and many people, including Tsipras, believe Greeks are too proud to change. Even though the EU has imposed austerity measures onto Greece in exchange for the bailout money, Tsipras said, “We don’t believe in the measures that were imposed upon us” (Petroff). Tsipras has refused to make any internal reforms other than those imposed upon the country by their lenders. This has led to disagreement on lending from the EU countries, such as Germany.

Now after receiving a third round of bailout money from the EU, Greece’s creditors are angry that no significant economic or governmental reform has been made in Greece because Greece’s economy affects their creditors. Now many members of the EU want Greece to leave the union as Greece does not contribute enough financially, yet needs constant support (New York Times). While many believe that Greece’s economic situation is straining the EU’s economy, others believe that Greece should be supported during their economic hardship until they can recover and once again contribute to the EU’s economy.

This political dilemma is the focus of Michael Ramirez’s political cartoon in Investor’s Business Daily on July 7, 2015, we see Greek Prime Minister Alexis Tsipras holding a book titled, “Basic Economics,” and saying, “it’s all Greek to me.” Ramirez employs a classic cliche relating to Greece, “It’s all Greek to me,” which colloquially means that something is impossible to understand like Greek letters. The usage of this phrase is comical due to the fact that Tsipras is Greek, so not only should he be able to understand his own language, but as the Prime Minister of a country that founded Western Civilization, he should be able to understand basic economics. Ramirez’s cartoon claims many of the economic issues in Greece are due to Tsipras’s inability as a Prime Minister to enact change effectively, and his exaggerated drawing of Tsipras’s illustrates him as baffoonish and caveman-esque with his large brow ridge and jowls.  Since Tsipras is pointing at an economics book and saying that it is impossible to understand, Ramirez is highlighting Tsipras’s ineptitude as a Prime Minister. He has been unable to employ successful economic and political reform following the bailouts, and he could not convince his fellow politicians to accept the bailout.

In Knott’s comic, There Ain’t No Such Animal, he focuses on Germany’s reparations and their affect on other nations, just as Ramirez focuses on Greece’s economic woes and the effect of this on the EU. Both comics employ an exaggerated caricature holding signs to illustrate their political meaning. Both cartoons focus on the economic strife of a country, and other countries reaction to said economic trouble. In Knott’s comic, he illustrates the world ignoring the struggle of Germany due to their compliance with stringent reparations, while Ramirez illustrates Greece’s ineptitude and the EU’s disapproval of Greece’s economic policies. While both cartoons deal with complex economic situations and the world’s reaction to those economic policies, they differ in the reactions.

Greece’s Economic crisis has had a huge effect on the global economy, and the crisis has shown the importance of economic reform and proper usage of bailout funds. Due to this crisis and inability to control the Syriza part, Tsipras resigned his post as Prime Minister of Greece on August 20 (The Economist). If Greece had been able to control their financial reports and made better financial decisions in the years leading up to the 2008 recession, this situation could have been avoided, but due to poor financial planning and an ability to cooperate with creditors Greece has earned a reputation within the EU as uncontrollable and risky, and its exit from the Union and return to the Drachma could be soon to follow if things do not change in Greece.

Works Cited

Alderman, Liz, et al. “Greece’s Debt Crisis Explained.” New York Times [New York City] 9 Nov. 2015: n. pag. nytimes.com. Web. 17 Nov. 2015. <http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0>.

Data Team. “Another Greek Vote: Tsipras Resigns.” The Economist 20 Aug. 2015: n. pag. The Economist. Web. 17 Nov. 2015. <http://www.economist.com/blogs/graphicdetail/2015/08/another-greek-vote>.

Hatzigeorgiou, Andreas. “The Greek Economic Crisis – Is The Euro To Blame?.” World Economics 15.3 (2014): 143-162. Business Source Complete. Web. 17 Nov. 2015.

Knight, Daniel M. “The Greek Economic Crisis As Trope.” Focaal 2013.65 (2013): 147-159. Academic Search Complete. Web. 17 Nov. 2015.

Petroff, Alanna. “Tsipras: I Don’t Believe in New Greek Reforms.” CNN Money.  N.p., 14 July 2015. Web. 29 Nov. 2015. <http://money.cnn.com/2015/07/14/   news/economy/greece-crisis-tsipras-parliament-vote/index.html>.

Ramirez, Michael. “It’s All Greek to Me.” Cartoon. Investor’s Business Daily: n. pag. Investor’s Business Daily. Web. 17 Nov. 2015. <http://www.investors.com/default.htm>.