Photo: PIAZZA del POPOLO
The IMF’s forecast of what Greece will look like after pushing through spending cuts is startling.They expect unemployment to rise to 15% over the next year, and then stay at this high level for half a decade, according to The Washington Post.
The country will endure a period of ‘internal devaluation’ whereby wages will be falling, jobs will be lost, and growth will be ‘stunted’.
If it were a quick slap, and then things recovered it might not be so bad, but if Greece ends up in bad shape for multiple years, after already going through tough times already, the situation would likely be unbearable for its people.
This situation seems simply too ugly to happen, meaning that real spending cuts won’t happen.