How The Euro Works & Created The Euro Crisis
ฝัง
- เผยแพร่เมื่อ 3 ต.ค. 2024
- How did 19 countries abandon their own currency for the Euro? How did it cause the Eurocrisis? How is the Euro managed and mismanaged? I wrote this episode in such a way that even if you know almost nothing about economics, you will still understand it. So enjoy!
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You saved the day man. Thank you
You may want to doublecheck your map ~1:30. Lithuanians and Latvians know what I’m talking about.
Dr ROLFCOPTER! Livonia
I am asian but i also knew!...lol
Yeah ur right, this map is drawn terribly! Lithuania and Latvia are provinces of Russia!
@@neenee8194 :D
Was about to make a comment
Good video with very clear explanations of the situation and problems we are currently facing.
Just noticed a teeny tiny mistake at 6:01 where you put the colours of the German flag in wrong order. Aside from that nothing to complain here.
Keep up the good work with your great videos.
The problem with the Euro is not the currency in itself, but a lack of a common fiscal framework. How some countries were allowed to borrow so much is beyond me, but that is being the death of the Union.
Money does not matter
Lies again? Ezlink Card USD SGD
how can you be excepted to pay a debt when the economy doesn't have growth and money, they are just hurting the innocent people, they should just postpone the debt for lets say 10 years, and focus on strengthening the economy, condition the country to fire the responsible for the debt and sue them, then condition the country to put something like a supervisor EU financial minister for the time period that the debt is postponed, to make sure the country delivers growth and can actually repay the debt without austerity measures
The debt simply can't be forgiven, because it would set a dangerous precedent that governments can borrow as much as they want and simply never pay the money back. Greece's options are 1) to become dirt poor for a few years so that it will be relatively cheap for tourists and industry, or 2) to abandon the euro completely, let the drachma inflate a few hundred percent, and be done with it.
Interesting when you look at the EU relief package: common debt, grants and loans. Only when the rich nations were affected were we able to come together and help everyone, though negotiations were tough, they achieved what was politically impossible a few years ago
plz learn where is Lithuania and latvia
Haha that what i want to spk,he confuse Latvia and Lithuania location!....😂
Ah the Baltic states, they're like the food in the back of your refrigerator drawer, you forget they're even there until a guest asks you what the little fuzzy thing in the back of your crisper drawer is.
lmao it looks like some Lithuanian and Latvian commonwealth going on.
I was about to say that lol
Much like Slovenia and Slovakia - You’re DOOOOMED!
In all honesty to the people in the comments and the maker of this video that say "Greece lied" and that was pretty much the reason for the European financial crisis, well that is pretty pathetic to believe. Greece is no Fiscal criminal mastermind, it never has been, it has always been politically economically and technologically slower than the west in recent history so please explain to me how the European community simply accepted that a country that has been closely monitored for years due to its strategic position and economic value (due to its incredibly rich sub-terrain and important trade routes) in a snap of a finger erased all of its national debt. In my opinion, at least the inability of Greece (and other southern economies) to fit into a wider European economy were not just predictable but predicted and ultimately aimed to use these countries as an escape route in the case of a big financial disaster such as the 2008 global crisis. It was more than reasonable to loan huge amounts of money to Greece that they wouldn't be able to pay in the future. The country is now completely politically depended on economies like Germany that are slowly buying off as debt repayments all of Greece's resources, tourist sites, public services etc at a ridiculous price. Greece has become a de facto vassal of Germany something that benefits them massively and you are telling me that Greece simply fooled them into letting them into the eurozone, if that isn't the perfect economic policy I don't know what is.
Everyone is at fault. Greece for cooking the books, and banks, countries, and institutions for not checking the reported numbers properly.
So many problems of the EU are caused by people wanting greater "sovereignty". But then that leads to economic problems that they blame on the EU! It's incredibly stupid.
Vlad Rosca then bow my slave, after the intel given by you, your ruler has arrived
Feel sad man, so damn true
We need a more federal eu
EU will be easily collapsed. Following the coronavirus’ economic recession, and Brexit, the EU changed into a German- Francophone company. And Greece, Italy, Spain, Ireland, Portugal wanting money, also regular payments to other EU countries, will make too much. Unless US or China invests, the fall of EU because of money may occur. Also, right-wing parties will quit EU. Thing’s aren’t good in France lol
It is simply because EU is not a country
1:23 I'm offended. and not only because you mixed latvia and lithuania., but also because of their borders.
I didn't mix them. I simple fucked up the drawing.
6:01 German flag ist wrong
Ja, komisch, wenn man bedenkt, dass sie ein Geschichtskanal sind.
(Ich lerne deutsch und musste für einige wörter google translate verwenden)
Die Flagge sieht aus wie die von Belgien lol
Not even Belgium
Well not just Greece... what about the Italian economy? It's the second slowest economy now, just behind Greece, with just this year a less than 1% GDP Growth.
I can't speak for Greece, but for Italy most of the expenditure is lost in burocracy and inefficiency, besides old abuses of the welfare (people retiring at 50, while in other countires they do at 70, and let's not talk about the money that the politicians themselves consume).
Taxes keep rising and rising: next year the VAT is expected to raise to 23%.
Either Germany invades and forcefully reforms the Italian institutions, or there won't be any real change from the inside. 😭
Yeah i have said that for years now. When a member-state cannot pay their debt, the rest of the EU should just annex enough of the nation to pay for the debt.Let's say that italy mismanages its loans and owes germany money, then germany will just ask if anybody wants a piece of italy. The Swiss might say that they want some of their old borders back, and that they would pay 40% of the debt for a certain area. Looking at the productivity of the area, they might come to the conclusion that this transaction will pay itself off in 30 years. Wow! Not bad! Austria also wanted some other bits, but those would pay for themselves in only 20 years! No deal Austria! At least the Swiss are offering a generous sum! The last 60% could go to anybody. Let's say that some Saudi-Arabian prince offers to purchase Sicily to reintroduce the islamic states in southern italy for 75% of the debt, repaying itself in maybe 23 years. This is the best offer that is got, and so bam. 115% of the debt is repaid. Italy gets to keep the remaining 15%, which it can then spend on useless crap in typical italian fashion. Such as housing all the fleeing Sicilians scrambling to avoid being put into concentration camps as a new European caliphate draws its first breaths. And of course italians fleeing Switzerland since they now have to work.
If the italians throw a fuss about the entire thing, then Saudi arabia and germany might declare war, nobody can intervene or the entire EU dogpile them in a defensive alliance, and the loser gets additional debt on top of the old one to pay for the costs of the winning countries(the Swiss wouldn't though, they are just trying to help). If things go bad enough, maybe 100% of italy would have to be switch hands. So in the end the italians would become a people without a nation, get five bucks each, sharing the surplus left over after paying their debts, and be expelled from the EU. See? It is the perfect system!
Well....i am not european....u means theres another crisis?🤔😓
@anonymusopina1 The definition of insanity is giving up on a system that gives it's member states massive advantages just because it isn't perfect.
Diglielo fra
@anonymusopina1 leaving wont fix those problems, it seams like it will but in most cases it will make it worse
5:59 that german flag xD
Fun fact: Greece voted to leave the Euro in 2015, and despite most people voting to change currency, the EU ignored the result.
Whether Greece has the euro or not is up to Greece itself. It can choose to leave the EU at any time it wants to, just like the UK.
Fun fact: As a greek let me tell you ,we had a referendum not about leaving Euro, but about accepting or not the 3rd program about our debt ,that of course came with austerity measures, that the EU suggested. It was voted not to accept it , but soon our government came to the realization that the program was not negotiable , so either we accept it , or we leave the Euro and the union after that. That most probably would have come with an official bankruptcy of the country , that our government feard about ,cause of inevitable social turbulences that would occur. So we accepted the 3rd program and stayed in the union. It was ours choice tho, noone forced us to stay.
@@ThG1618 Euro is thereason we have "program" aka internal devaluation.
"Culturally diverse when it comes to government spending."
That's a friendly way of saying that the Southern EU countries are just very bad at fiscal politics.
Devalueing a currency is not the easy fix you make it out to be
Nothing is easy on economics, though. I think my audience is smart enough to realise that complex systems rarely have an easy fix :)
@@HistoryScope it's actually very easy, I'm not that great at explaining how it works but if you listen to a few speeches by economic wizards Maduro and Chavez and you'll realize how simple it really is!
It would not fix all problems but it would be an easy fix for at least a portion of the economic problems.
No it's not an easy fix but it's contained within one country and doesn't impact on the whole. It also doesn't pass the problem on to someone else. How people live and govern themselves within their own borders has now been merged with multiple others, the resultant "soup" is inedible to anyones palate
@@michaelbrown865: "it's contained within one country"
Currency devaluation isn't contained within one country when the currency is the Euro.
Bit premature, Greece is back below 1% interest and has been cut loose from European aid since August 2018, 4 months after this video. The Greek can loan money cheaper then the US can and both in 2018 and 2019 their budget has a surplus. They're going to be fine and maybe the standard of living might not return for the next 50 years or so but their standards were unreachable even for northern European countries.
The lasts part didn’t make much sense but Greece seems to be doing fine for real. But the current issue is Italy, like wtf are the Salvini government doing there! They already owe €2.5trillion to EU but they took more debt for stupid plans including increasing employment by creating artificial needs for it which could backfire very badly!
I really think the Southern European countries are seriously f ups, there government are horrible but the people will always blame EU for it. Even though it’s not EU’s responsibility that an idiot government is in charge of Italy or Spain or Greece!
Good think that Greece still has a gdp per capita of 22,000 (more than double of Turkey's) and it's constantly rising, they managed coronavirus very well and they have a very little amount of coronavirus cases (around 4,000 cases). Greece has a way brigher future than Italy, which not only suffered a lot from the virus but also very early retirement ages, tax evasion, and many other things the guy said below. Greece just found large oil reserves in the east Mediterranean which can boost the economy by a lot, that's why there's all of that drama going on with Turkey, they are stealing Greece's oil. I don't want to continue with the oil and Turkey part, but Greece is also building new railways and lots of other projects to boost the economy by railroad (which is already lacking compared to other EU members)
Nice video but very simplified way! There are more in the crisis than just Greece lied about their economics or Germany don't want euro-bonds! Anyhow we are 8 years inside this crisis and the end isn't near at all!
After the Greek lies about their debts, Europe should have see this system is not good. Every citizen KNEW the money never comes back. Most Dutch (among me) didnt want to “forgive” the lies and not let Greece enter the monetary union.
The same with the bank crisis, caused by the southern european countries. We all knew the pension money used to save the banks would not come back. But politician do what ever they want.
After the bank crisis, good times arrived. Where the north of Europe would take impopulair steps to be able to survive a next crisis (now going on with the COVID-19).
But our southern “brothers” did buisnes as usual... lending money to spend on buying votes for coming elections... guess who are holding up their hands for new aid?!
I always favoured a 2 economy system that we could grow towards each other... changes dont happen over night. Northern and southern economies with their own coins. When a southern country fixed their budgets they could be allowed into the northern economie.
But more then a 2 economy system I favour each country for their own. The whole EU-system (union, banking) is a new method to spend tax money on politicians wet dreams (like this “green” movement). And as “green” as they are; each month the leaders move from Strasbourg to Brussels and other way around... expensive, pointless and certainly not good for environment.
As dutch tax payer I say; f*ck this European (monetair) Union... we are only 1 Europe when its in benefit for politicians... any idea why dutch people prefer fuelling their cars in Germany or Belgium?! Different taxes make our fuel more expensive... that is what 1 Europe looks like. BAH!
I dont think thats 100% correct, many countries in the south tried to maintain their finances in order for this years before covid hit, but you have to realise that government spending is very important in a lot of economies, places like portugal got around that by successfully increasing their exports and with a tourism boom but with world wide recession incoming there's no other way but to stimulate the economy, the usa has done (not in the best way possible but they did it), germany as well, but when it comes to more fragile economies it's not that easy. Sure, the EU says countries should spend on their own economies to help alleviate the incoming crisis but without their own currency most southern countries face the fear of 2011 happening all over again. I don't know if you remember but when the financial crisis hit, many of the banks and afflicted companies that got in really dire straits were german, french, dutch.. etc so it made sense for the EU to ask governments to spend money to keep the economy afloat, many of these southern countries to which northern companies and bank had lended money. The problem came when the EU didn't come up with a comprehensive debt leverage system, you can ask everybody to spend but then when it the time to pay comes you have to give a leverage to compensate for the extra effort you just asked, and so countries that were already in bad shape just got worse. So you either repeal the euro or you go all in, we can't have it both ways and then make debts a moral issue because you don't to risk losing the next election. European politicians behaved like cowards and the public ate it all up with nice speeches of the lazy poor vs frugal rich. You can't have it both ways, shure greek governments were very irresponsible but they were also part of a flawed system in which if they weren't they wouldn't have been able the borrow as they did in the first place. So I agree with you in some things but I disagree when it comes to 2 economies system, because usually the north lends the south and demands for the south to borrow and spend in order to maintain the eu economy floating but doesn't give any comprehensive debt paying scheme that allows the south to borrow in sustainable way. Also another thing that doesn't help, is that places like your country' luxembourg and others, work as tax havens, sucking money that shouldn't leave its country of origin but forgetting all of that whenever the countries that money came from are in a difficult situation, when can't have dutch politicians demanding fellow countries to raise taxes and then create tax havens, which of course it's in every way worse when we're all together in a monetary union.
I understand what you say, but I cant agree with all.
About the banks, they are private companies, nationality doesnt matter. How many European banks have/had their HQ in London due to a better financial climate.
I agree with u on our (and Luxemburg) taxation, but it goes 2 ways. True, the big companies benefit from the taxation, smaller companies don't. And this is changing now (under pressure of Brussels), we already lost 2 big companies (like Unilever) who moved (or will move) to London, even tho the brexit. On the opposite of our positive taxes for big companies we have taxes on all kinds of groceries. In my previous message i talked about alcohol and tobacco, but it is the same with cola, bread, soap or any other products we use daily. Dutch people can save up to 30% to do groceries in Germany because they dont have our BTW (tax per product) Unfortunately, me living in Amsterdam, it is not worth the trip. But when ever I need to be in Germany (or Belgium) I make sure to save some money so I can buy big as far as possible.
Talking about the southern European countries. Their system is totally different from ours. Did you know that Italian people are the most rich ones of Europe, due to no (or little) taxes? Its not that all Italians are rich, its like anywhere else in Europe, the system benefits the richest. Their system is more about individualism, while ours (the dutch) is about collectivism (pay taxes for healthcare, roads, pensions). It resulted in us having a huge social financial buffer, where the Italian dont have. So when the Italian system asks (via Brussels) for aid from our buffer, build from dutch taxes, it feels unjust. Specially since they have been warned/told after the bank crisis to create their own buffer. When I retire (at age 67) I have saved (via taxes) a pension of €600,- month. Its not enough but it it a large sum to survive. Most dutch people also have a private pension savings. But private or national, we have worked for it so we dont want to see it depleted by countries who have not add to the buffer.
Same unjust feeling about Portugal. Even tho (as far as I know) they have more taxes then Italy, Portugal has one of the largest gold reserves of Europe.
This year we had this strange situation with Polish people. After 3 months of work we have the right to get (i believe) 1 month of sick money (70% of normal salary). I have been told that a dutch week salary is enough for a polish family (5 person) to live for a month (cuz cheaper houses, groceries, less taxations).
This year the state found out that there are some polish people who work 3 months, call in sick, and leave to Poland for a month on holiday.
I cant blame the polish people, i would probably do the same if I had the opportunity. But I do blame our politicians who let it happen.
Our European monetary system is not good and open for corruption. It was good maybe when it started, when it was just the western European countries. The north could manage the southern “poverty” (still I dont agree to do that) but the system started crumbling down when more poor countries from the east where added.
I dont have the solution that satisfy all. But from a dutch perspective I know exactly what we need to do (Nexit or 2 seperate monetary systems, maybe 3 when considering eastern European countries).
Unfortunately we have a high pro-Europe sentiment so I doubt we will ever (peacefully) exit the Union.
We all know how hard it is to put out Greece fires
Very well done video..
5:30 as an American I know our system of the federal government shuffling money between states works, it still bugs alot of us. Poorer states in the "rust belt" and along the Appalachian region all have homeless people, mentally ill people, and criminals that flee their home states for wealthier ones to the point that some wealthier cities like Seattle are facing a homeless crisis and rising crime rates. Those same states also get massive handouts every year paid for by the wealthier states. It drives some of us crazy because if your not a wealthy person in those wealthy states you still pay high taxes to fund those poor states and prop them up, where i live our taxes have steadily risen in the last 10 years and housing prices have nearly doubled but wages have stayed the same. We'd appreciate lower taxes and better social programs here, but the taxes go elsewhere and even though they keep increasing social/welfare spending the programs are so flooded by the influx of homeless from other states (something like 90% or more of homeless people are from out of state) that the quality and coverage of those programs is reducing.
My god, your voice is so deep that it generates bass, it's beautiful!
How would the repeal of the Glass-Steagle Act in the 90s (a separation between investment and commercial banking) have affected the Euro?
Thank you, this was very informative.
You have such a good content when it comes to EU related videos!!
PLEASE DO MORE!!!
There can't be economic unity unless there is political unity. And we know that each European country has its own political agenda.
Now I see why Thomas Jefferson did not want a central bank.
So basically capitalism. Even the USSR didn't interfere with constituent republics like the EU does
I’ve just found your channel. Really enjoying your stuff. I just couldn’t finish this video. The speed you were talking was just too much. Would love to hear it redone with your new confidence. I’m guessing this was probably one of your earlier videos before you were as confident behind the microphone. Thanks for the great content
use the pause button
I watch him at 1.75 speed... but i do that for almost all channels
You deserve FAR more views
You can help me with that! Share this video on Facebook, Reddit, and all your friends! :D
Post your video(s) to reddit.com/r/europe and other related subreddits. If you get to the front page you will get a lot of views which will boost your channel and your videos might get recommended to people.
Already am :)
Exactly what I thought. These videos are gold, yet only have views in the thousands.
No, he doesn't deserve more views, 'cause he's full of shit!
Wow, the audio had a LOT of bass! Was this recorded at an 8kHz sample-rate or something?
The bleak image of Greece suffering until 2060 was greatly exaggerated
Why did he say “ this is what happened in the USA” twice
propably a editing error. He acidently copied this section,
Very nice video
Scotland will have the EURO too.... Revoke Article 50
The Euro is not in crisis, its working as it was design to, lower salaries and social benefits, so you know, don´t change something that is working!
Is it possible you're talking up a crisis? Granted, this video is now 3 years old...
Main problem was: certain countries (Greece,...) should not have joined since (as was found out afterwards) it didn't meet the criteria. Others failed to reform (Italy,...) and relied on cheap money
During ww2:
- Croats forced Jewish and Serbian children to eat bread mixed with glass, in Croatian children concentration camps......
People expecting little in government support in northern European countries?? Northern European countries have big welfare states. There citizens get a lot af support. You are not checking you're facts, or are lying.
In comparison to southern Europe, northern Europeans expect little of their governments. For example: most southern European nations had a retirement age of 55 or similar, while they still had small economies and ageing population.
Simon, check for Northern European and Southern European government budgets. There is a clear difference between the two.
Northern European countries have several years of fiscal surplus - they collect more revenue than they spend - and some years which they do have deficits - they spend more than they collect. Still, at the very worst their deficits are around 3% of GDP, usually 1%.
Norway, in particular, haven't had deficits for several decades. Their surplus even got to 18% of their GDP during 2008 - i hardly think there is any other country in the world capable of such feat.
Compare that to Greece. Not only it did not have fiscal surplus during any year since the 70's (when historical data actually starts), their deficits would range most of the time between 6 to 15% of GDP.
No wonder they have so much debt.
it is a little more complicated then that; norther european countries have massive welfare states but they also have sky high taxes whereas the southern countries have similar (but smaller) welfare states but they try to appease the people by keeping taxes low.
@@luiz918 You have to remember though, that Norway has their Oilfields and a relatively small population, while Greece has no real exports except oil and cheese. xD
The current retirment age in germany is 65, while it is 62 in greece.
The b in debt is supposed to be silent ;)
You are a good teacher, serious! Please, keep on doing it or else I’ll find you and I’ll ki...😂no jokes here, just quotes😂
the moment you stop the video every sound suddenly feel so thin
So you are under the assumption that the ECB didn't know that Greece had ECB debt when they gave them even more hazardous loans?
banks usually dont pay very close attention to things like that, they just want you to take the loans so they can charge you the interest. they usually claim things like "it's not our job to police people looking for loans, they obtained it by fraud when they lied on the application!". I saw alot of this in the US during the housing market crash here, banks would allow people to take "stated income loans" which were designed for small business owners (small business owners have high revenue but usually reinvest in their company, so on paper they appear to make much less than they could potentially) but regular employees were using those same loans. I know banks and lenders who gave massive loans to people that they knew couldnt be making that much, to the point that i knew people who werent make much above minimum wage claiming to make $80k or more a year, and the banks just turned a blind eye or even helped them to lie so they could get bigger loans. After the crash those same banks claimed that applicants lied to get the loans. The same thing on a larger scale happened with nations like Greece
We need more bass
If Poland ever joins the Eurozone, I'm fucking leaving for Norway, Switzerland, or some other country that still didn't catch the 'gotta globalize' parasite.
i'm not Baltic State Citizen, but you made a mistake saying Latvia (and on the map you pointed Lithuania) and vice versa with Lithuania
Im gonna subscribe, keep videos like this coming please(:
You cannot have a currency union without a political union simple as that.
My ears are burning
Good. That'll keep you warm this winter!
1:26 You coloured Latvia while saying "Lithuania" and Lithuania while saying "Latvia"
You said that the same happened in the US twice BTW
sorry, is it just me or the audio of this video is really different from the other ones made by HS?
While I agree, the video is very very biased. It would be fantastic if other videos were a bit more neutral in the language used.
The main problem still exists, many people expect their government to provide service and pensions, but avoid, at all costs, to pay taxes if humanly possible, being it "forgetting" to declare income, or direct tax fraud´, while wanting to retire after only 30 years on the job market, meaning someone else have to pay for them the other, estimated, 50 years they live.
why did you not mention Kosovo joining the Euro in 2001!?
because kosovo is disputed and didn't offically join.
Dr ROLFCOPTER! No
3:52 also because that would make the EU pointless. It’s there to help support each other whilst boosting trade, not that it works perfectly.
Nice vid! I don't quite understand the part on 2:40.
why suddenly greek bond is considered safer after joining euro?
why Germany or other richer EU countries have to pay Greek debt if they are in the same currency?
Let me explain it to you:
Before Greece joined the EU, their economy was in shambles. An investor would not invest in a greek bond with low interest because there was low chance of getting money back.
The thing with Euro is that it is governed by a central bank that is made up of all Euro using countries. So Greece's central bank is Germany's central bank too. So If an investor wants to buy greek bonds, he can know that he will be getting money back from that central Euro bank.
With that being said, Germany and other richer countries don't have to pay Greek debt if they don't want to, but if they don't, Greece's economy will crash and the value of the Euro will go down which will affect all of them. So they are sacrificing their own money for the greater good if it makes sense. Pls comment if you have any other questions
@@waffle6340 Thanks for your explanation!
So if everyone was expecting Germany kinda would repay the debt for Greece from the start, then why were everyone panicking during the Euro crisis and caused the crash of stock market? Did Germany threaten not to repay at that time ?
This thread is why I love my viewers
Germany did indeed not want to pay their debt.
Germany had a crisis of its own and spending money on other cou tries during a crisis won't get you reelected nor is it in the national interest.
So Germany did so on the condition that Greece get its finances in order through austerity. That means that Greece is too poor, can't repay its debt, and nobody will lend it money (in simple terms).
So Germany was only to lend Greece money if Greece was going to implement drastic changes to its finances. This wasnt JUST Germany. The IMF also demanded a lot of austerity measures, as well as several other euro countries such as Netherlands, Austria, and Finland.
Greece didn't want that because it would cause massive economic damage, which you can see when looking at GDP figures of Greece from the last 13 years (Google 'Greece gdp' and it will show you a graph).
There were several other solutions proposed by countries such as splitting the euro between Northern EU euro and a southern EU euro, eurobonds, kicking Greece out of the Euro, and some others I can't remember. But they were all rejected by one of the parties.
Until eventually Greece relented and implemented austerity.
@@HistoryScope So no one before the crisis would expect Germany to not repay for Greece, so this is why why Greek bonds are considered safe to buy ?
Did the Greek bond and German bond have a similar yield at market prices before the crisis then? Given that they are considered similarly safe
I guess now after the crisis, people are cautious about Greek bond, and Greek bond should have a higher yield now.
No mention of Italy who want to go back to the lira. Now that would collapse the eurozone.
9:43 says problem of EU is ruled too much by Germany, but from rest of the video is sounds like the problem is its ruled too little by Germany. Most of the video put Germany as a strong economy with a sold government, would it not make sense to have Germany 'teach' (convenience, threaten, whatever you want to call it) other government such Greece to get their acts together? The problem in Greece is largely cause by bad government after all.
The German issue is that it is too big to dominate and too small to be an equal partner. I think I explained that in a previous video
@@HistoryScope Well, im Spanish and i tell you i would feel so much better and safe if Germany ruled over the economics of my country with an iron fist.
Sadly, many of the politicians here have no knowledge of even basic economics, so im sure not so much people would get upset if Germany tells us how much to spend (Even the most nationalist people like me wouldn't mind)
David Cascales „EU is the 4th REICH fuck the nazis“ ... it will never happen and as a german i rather see the EU fail then hear shit like that
@@johanness.7813 Dude you serious?
You see, here in Spain is just non-existent any kind of anti-EU movement and is also like that in most EU countries. Some people see it as a restriction to our freedom, however, the inner nations with it controls it without impediments. The problem is not the EU itself, but the ones who controls the nations who control it.
Said so, i think you would like a more powerful EU over his members, because already the bad work of the politics classes of one member will afect you, and by contrast, the EU is much more responsible and careful because there's a ton of different interest in between the members and, if they do wrong, it is more likely the situation change to the better :)
@@dalius6633 Of course I want a strong EU. It should work in a similar way to the United States. But that won't happen because selfish states will have killed the euro by then.
The EU is exceptionally rich compared to the rest of the world. We have only one resource and it is a well-trained workforce. If we want to keep up on the world market, we have to reduce our livelihood. There are 4 Chinese for each of us who work for 1/4 of our wages. Everyone is crying that the EU is destroying jobs and that may be true in part, but a much larger part of the jobs will simply be outsourced to Asia because we are not productive enough to pay current wages. People are too stupid to understand and their politicians continue to fund the standard of living through debts that only work with the euro, while slowly pushing it down the drain.
Germany will never take the first step in solving the problem. With a few nazi calls, the moral would be broken and it is better not to try it at all. I would be happy if the netherlands would make germany their pupet state. They have exactly the same economic interests as Germany and nobody can accuse them of being Nazis.
The solution is still common pension funds, unemployment insurance, welfare and healthcare funds. Now, specifically with healthcare, I'd want a system where every European cititzen pays into a federal tax fund, which is the distributed to the member states for them to spend as they see fit on healthcare
@Dr ROLFCOPTER! I don't actually want a common healthcare system - for example the French may want a more government-hands-on approach while I prefer the German system of just giving everyone the same share of the taxes designated for healthcare, which he can then use on any of the few dozen regulated non-profit insurers they choose.
What I do think is important though, is to give every state the same base line of funds. If one state chooses to pay more, it can do that out of its own pocket. If the climate is really the reason why doctors cost more, then I suppose it would be unfair to punish those living there for their climate, the US also doesn't let people in warmer states pay a different amount for Medicare and Medicaid than those in colder states
@@cheydinal5401 it is very fair to make people to pay more depending on where they live. Spain for example is a warm climate and has Malaria, and a higher chance of heatstroke. But they also have the possibility to attract tourists and the climate gives them other benefits..
@@neenee8194 Do those two things cancel each other out, so they don't need to pay more at the end of the day?
I think one big reason why countries are rich is also the fact that they already have industry to keep getting rich on
As a random citizen of country X, I really don't want to be tied financially to country Y. I never voted for that, and I won't.
@@Johnny-cz2wv Well, the same happens with local governments in literally any country. You don't live in say Houston right now, but you could easily move there if you like. And right now you pay taxes to the inhabitants there, and they pay taxes to you, even though you live in Dallas.
The Euro is useless on Monday, January 1, 2024. 25 years of Euro has gone wasted.
1:10 Sweden voted to not use euro either.
No. Sweden voted to never fulfil the requirements needed to join the Euro. This is a slightly different scenario as Sweden is obligated by treaty to adopt the Euro when it is ready. But they're is no obligation to strive towards being ready for the euro. Its quite an interesting political move on their part: able to adopt at any time yet only if they choose to do so.
the people of Sweden has voted to not use the euro. Look-> www.dailymail.co.uk/news/article-196087/Swedes-vote-euro.html
Artificially low interest rates ruin the euro
Where are the sources in the videos?
Don't trust money
great and indept info
What currency does Poland use
złoty
Kurwa
also greek euro crisis is gone.
EURO...? HOW MUCH IS OF TURE TRANSLATION BESIDES EUROPA....IN GREEK 'NA TO EURO/EVRO ' MEANS LET ME LOOK FOR IT'''.... MONEY....AN AROMA TO FOOL YOU.. LITTLE OK.. MUCH HAS STENCH..BEWARE...
The Euro should have only been adopted by France, Germany and some other Northern European countries. This would have been better for everyone
Nice animation but completely wrong analysis. Greece debt was high but basically stable until the financial crises 2008. Because of the no bailout policy in European union there was a market risk for the financial capital in Greece. This led to capital flight and higher interest rate for Greece, causing the crises. The bailout loans from ECB went almost completely to save German och French banks that lended irresponsibly. This "loan" to Greece compared with austerity packages made the economy sink dramatically and debt to sky rocket. If any singel country is to blame its for sure Germany. First it breaks the golden rule of a monetary union, to have lower inflation than the rest and in this way increase its competitiveness generating huge trade surplus on behalf of the other countries, with capital export as a result. Secondly, it insists on no debt restructuring for Greece but instead demand more austerity that only made the situation even worse.
So you're saying that the Greek government bears no responsibility for what happened? Come on. They were caught cooking their books. I agree, there most likely was predatory and questionable lending going on, but the Greek government had to sign off on the debt as well. Banks can't simply put money in your account behind your back and call it a loan. The thing was a perfect storm of recklessness.
Won’t printing more money just less to inflation, which is bad?
All because they lied.
Fiscal mismanagement is the problem ! EU countries can not print money to buckle the budget anymore ! These countries have to borrow money every year , and they struggle to pay back , every year , growing debt !
why do politicians not learn...
Good one :)
What crisis, it’s a stable and functioning currency.
Germany and the EU 😂😂😂
I am greek. Spot on.
Interestingly, one of the most unnecessary things that politicians and government spend on is pensions. Instead of having the government and the younger generation being expected to pay pensions for the older generation. On top of that, many people especially high income earners don’t pay their fair taxes, a wealth tax would be much better than income tax as it would target a persons net worth instead of their income from a job and would be easier to keep tabs on politicians net worth too.
I would rather have a system where a business when paying an employee, must pay in full their salary and pay into something similar to a pension fund but owned by the employee, only after the employer has paid at minimum 10% of the employees total salary in that specific fund will the employee match it. Plus it can be as late as 3 months in case the company is in poor financial health but if the economy is good and the company is going strong, the entire executive board, accounting section and finance head can be liable both to fines and prison time.
Talk about the Tulsa Massacre.
5:59 cursed germany
Your voice is way to deep I can't understand because of it
Hey TH-cam!! You've gotta show this video to more Americans. It's not exactly the problem we are getting ourselves into but it does show the calamity we are creating for ourselves.
Come on! Germany is helping the entire Euro-area!
So they should.
That's why the whole euro area uses German tech and not, say; US, canadian or chinese
So how would social welfare payments work in countries with little government spending?
BASS TO THE MOON
Onerunonsentance
Did I miss Ireland/Eire?
6:14 Denmark would go bankrupt last, remember, no euro
im the 458th sub.
thank you :) I hope I'll make worthy content to keep you and the other 461 subs :)
as you said, you made this video for people who know almost nothing about economic and naturally, extravagance follows, always popular. So sad.
I have a couple of degrees in business and economics. So everything in this video is correct :)
Nothing has been solved, the problem has just been kicked further down the road in the hope a miracle happens or the people who created the problem have handed it over to someone else and left them with it.
6:00 German?
That's not my flag dude
1:25
oh nvm people already pointed it out XD
Ok imma just link this here,en.m.wikipedia.org/wiki/Economy_of_the_Republic_of_Ireland Ireland's economy has recovered very well since 2008 and 12 while spain reached a GDP equal to 2008 in 2016 www.ft.com/content/254bb8a8-1940-11e7-a53d-df09f373be87. Italy I presume hasn't recovered well as it's GDP was equal to 2000 in 2016 and was 9% lower than pre recession. www.ft.com/content/576f5c6e-8a11-11e5-9f8c-a8d619fa707c
As a Greek nationalist, i want Grexit
Marios Rouggeris because of course the idiosyncrasies of Greek (and other S.Euro) social and political economic structures that very much caused is Germany, France and the EU’s fault lmao
Or you could take some respensobility and just pay your debts...?
Nationalism belongs in the 19th century.
Funnily the same opinion most Germans had 10 years ago
If the Greek economy is damaged now, it would be totally destroyed if they left the EU, they are totally dependent on the EU. Britain will face a drop, but they're richer so they can deal with that better then Greece.
I guess option 3 it is
Giving freedoms to unelected Brussels leaders is extremely risky. Loss of courts and monetary freedoms is another form of dictatorship. How is Greece and Italy abd Spain fairing with debt, they were screwed by the Euro and harsh restrictions. Will be shocked if Euro survives in five years. Forcing migrants is another loss of freedoms by unelected bureaucrats. Trading union is great but everything else is a fail.
We have an election literally this week...
Awesome
TERIBLY wrong Latvia - Lithuania borders and places on map!!