Greece, like the United States (and most other countries) has a government that has been spending beyond its means for decades. As Greece’s government has promoted an extravagant welfare state, fewer Greeks have started businesses, or worked industriously.
Now Greece is nearing (another, more severe) defaulting on its promises to the central banks of Europe. Most Greeks can sense that their investments and savings will soon be confiscated by their government, and are withdrawing their savings from banks rapidly.
Now central bankers are as much as admitting that the Greek government will likely steal its subjects’ savings, and that Greek banks may be closed for a “bank holiday” this coming Monday.
The joys of Keynsian economics!
