Post on 02-May-2017
HOW POLICY DECISIONS INCREASED THE PROFIT / WAGES RATIOAND DRAGGED THE ECONOMY INTO DEPRESSION
GREECE, 2010-2014
THE PROFIT / WAGES RATIO IS GROSS OPERATING SURPLUS ON COMPENSATION OF LABOUR ADJUSTED FOR SELF-EMPLOYMENT. DATA: AMECO, EUROPEAN COMMISSION, WINTER 2014
@ioakimoglou
RESTRICTIVE FISCAL POLICY
-20%LOWER
GDP
FEWER JOBS
HIGHER UNEMPLOYMENT
+800.000persons
LOWER WAGES
-18% nominal -23% real
LOWER WAGE BILL
DOMESTIC PRICES DECREASED TO A
VERY LIMITED EXTENT DESPITE A 16% UNIT LABOUR
COST DECREASE.
UNIT LABOUR COST
LABOUR PRODUCTIVITY
-1.9%
-16%
-1.7%
FIXED CAPITAL INVESTMENT
HIGHER PROFIT / WAGES RATIO
+27%
PRIVATE CONSUMPTION
FINAL DEMAND
-34% nominal -39% real bef. tax~50% after tax
excluding managers
NET EXPORTS
EXPORTS GOODS & SERVICES
+11% contribution
to GDP
IMPORTS GOODS & SERVICES
+2% contribution
to GDP
-10% contribution
to GDP
-23% contribution
to GDP
-890.000 jobs
high propensityto consume
low propensity to consume
accelerator
poor export performance
+13% contribution
to GDP WAITING FOR
DEUS EX MACHINA:A RISE IN THE LEVEL OF
DEMAND IN EXPORT MARKETS
imports collapsed as a
result of depression
fixed capital investment is ~50% lower than in 2009
import collapse leads
to current account surplus