An Economic Crisis “State of Shock”: An Empirical Analysis of the Greek Economy

Abstract

The International Financial Crisis of 2008 (IFC), and the austerity programs imposed in Greece, hit particularly the already weak Greek economy; despite the crucial fact that the latter suffered severe structural, deficit and, debt problems over the relevant past decades, even before the IFC explosion. Through a structured questionnaire, distributed to 348 students at the International Hellenic University (IHU) and their parents, we investigate how the crisis affected their salary and their working conditions, as well as how respondents evaluate the measures imposed by the “Troika”. Our research findings are of particular interest. More than three out of four respondents, support the view of Naomi Klein that a society in deep crisis is in a “State of Shock”, unable to react, and Greece is such a case. Respondents tend to believe that the pursued policies are forms of psychological violence-pressure, aimed at the disorientation of people, who are willing to work under worse working conditions.

Keywords

• international financial crisis
• greece
• shock therapy
• statistical analysis