Elizabeth Palmer of CBS News reported that the $430 billion in spending cuts recently passed by the Greek parliament will have a significant impact on public sector wages and entitlements. For example, Greek teacher salaries will decline 38% from $1,450 to $900 per month, and the basic old age pension will drop by 23% from $600 to $460 per month. The unemployment rate for Greeks younger than age 24 is now almost 50%, and suicides in Greece have increased 22% since the fiscal crisis began.
Imagine what US public reaction might be if these same austerities were imposed upon a defaulting California or New York...
Source: Greek Citizens Bear Brunt of Massive Spending Cuts (2012, February 13), CBS News.