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EconoMeter weighs Greek impact on U.S.

Crisis may not be over, even after Greeks' election results

Roger Showley, U-T SAN DIEGO

Friday, June 22, 2012

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Kelly Cunningham, National University System
Answer: NO

Europe’s debt crisis and fallout from Greece’s problems are far from resolved, especially since more issues loom with Italy and Spain. Although Greece wants to stay in the eurozone, they remain unwilling (or unable) to take on the reforms necessary, including bureaucracy cuts, tax code overhaul and labor law deregulation. Greeks blame everyone but themselves, while attempting to continue living beyond their own productivity. Greek insolvency is only the beginning, not the end, of Europe’s problems. Given the importance of U.S. exports to Europe, the lack of clear path forward will also continue to weigh the U.S. economy down.