Will this insult the Troika? Explosive job growth in the Greek tourism sector!
The Greek ‘accomodation and food service’ sector last tuesday intentionally insulted the Troika by showing the highest rate of job growth of this sector of the entire Eurozone. Flabbergasted economists in Brussels and Frankfurt were heared shouting “:we’ve never experienced anything like this” and “this ruins our reputation as serious economists”! According to anonimous sources they even stated: “this has to stop, these cheaters do not play according to our rules and are giving us the finger!” as well as “don’t you understand it, a demand led recovery in Greece flies in the face of our models, that just can’t be”.
One of the economists even stated that on top of the insults the graph was a hoax, as tiny Luxembourg (which is not included) showed even higher job growth, which according to her, showed that high job growth in Greece did not fly in the face of the models at all as it wasn’t even the highest of the EU, so Troika economists were right after all!
The year 2014 was of course a boom year for tourism, but Troika (in this case: ECB) economists did and do not tire from stating that, the Greek labour market (among other ones) is petrified and inflexible and not able to create jobs and high unemployment is caused by these inflexibilities, not by a lack of demand. Worse, on Voxeu Troika economists, using a graph showing a whopping increase in competitivety (estimated with the Real Effective Exchange Rate) and at the same time a dramatic decline in domestic demand all over the Eurozone, recently even stated that high unemployment is a clear sign of a decline of potential output and not of a lack of demand, in the meanwhile confusing stocks of capital with flows of investment. But when this happens in all Eurozone countries at the same time exports will get a hit, too, as part of domestic demand is used to buy imported goods. And you just can’t expect the eurozone countries to boost exports to countries like Russia, Syria, Egypt or, for that matter, the UK which, until recently, profited from a greatly depreciated country. That of course leaves China and the USA. Are you seriously suggesting that these countries have to boost domestic demand to enable us to export? There are millions upon millions of well-educated unemployed in the Eurozone who desperately want whatever kind of crappy jobs they can find. Bulgaria is even exporting its women to the brothels of Frankfurt. Please, open you eyes. Eurozone labour markets are not petrified and what we need is demand and monetary reforms. Not even more unemployed.
Eurostat data on jobs were used, for countries for which data for the third and fourth quarter were available these were used, for other countries the third quarter data were used (20-302015).