People keep asking me what is going on in my country, as Greece is under the spotlight for the past months, for all the wrong reasons unfortunately. Newspapers, TV channels , even reality shows ( UK’s “Go Greek for a Week” – or something like that) have become experts on the Greek situation. Of course there is a good reason behind all this. Greece’s public finances are a huge mess. And since Greece is a Eurozone country, the probability of a domino effect stemming from a Greek disaster is significant.

Greece and its people are many times portrayed as 21st century Zorbas’ that never pay taxes, sit down on a beach all day drinking martinis and spending the EU tax money contributed from the other fiscally responsible states within the European Union. Well, this is half the truth.

It is true that for the past 30 years, a system of political cronyism took hold of the country. Political parties, in order to get public support, started spending EU money irresponsibly by creating Public sector jobs – even when there was no need to. In the past 3 decades the population of Greece rose by 16%. The number of public servants rose by 100% and now stands at 780k (out of a population of 10.5m). Public companies are extremely overstaffed on administrative personnel and short on actual technical/ qualified personnel, as political parties used these entities to hire non-qualified staff (prospective voters). All chiefs and no indians.

So yes, I agree. A chunk of the population seems to have had a nice ride! Are you disappointed or angry? WELL I AM MORE THAN YOU ARE.

And the reason is, that the REST of the population that was not attached to the dinosaur State was the one that FUNDED this dislocation by being the ONLY social group that actually paid their taxes! And I am one of them! One of the millions that turn on the television and hear that Greeks are a lazy bunch of free-riders!

I am talking about the middle class, people employed in the private sector that were 100% OK with their taxes (as income tax is withheld at the paycheck), taxes which kept creeping upwards and upwards in order for the State to continue its cronyism. People working 10-14 hours a day not only in a competitive environment, but also PLAGUED by the inefficiency of the Greek State and the bureaucracy,  getting paid 50% of the equivalent salary paid in Germany of France for the same job – but that still had to pay the same in terms of costs of goods with Germany or France.

And when the crisis came what happened? The State decided to continue its cronyism. Instead of reducing the size of the huge public sector to reduce budget deficits, it decided to INCREASE income and consumption taxes. The result? The 800k of public servants may have experienced a reduction in their ridiculous salaries and benefits (which meant that the votes for the Crony State were secured) but the tax attack squeezed the private market – unemployment now stands at 18% - 900k people unemployed and 99% of them is ex private sector employees!

Bottom line? If you have been working for the private sector for 12 hours a day and paid your taxes, social security and everything you prove to be a SUCKER – crisis comes and you’re unemployed. And the people that brought this to the country (the crony state and the public sector) are well and protesting in the streets because they don’t want to have a 10% salary reduction. Are you disgusted? IMAGINE THE AVERAGE GREEK private sector employee!!!

And if you tried to be a private entrepreneur? Ha ! ENTERPRENEURSHIP was vilified. The tax regime changes were VERY often (believe it or not Greece’s tax regime changed almost 100 times within the course of the past 10 years). Private enterprises were seen as a means of getting taxes in order to finance the bloating State. Profit was the “great satan”.

Not only this. Bureaucracy was maddening-and corporate laws were cancelling each other. Let’s assume that someone decided to launch a company. To get a company VAT number from the IRS, the IRS asked for the details of the company’s bank account – BUT to open a company bank account you need VAT number. Try to get around that. And there is more. To rent offices for your company you needed to have a registered company name – BUT to register your company name, you need to have an office lease contract in the name of the company (which is not registered yet!). Go around that too! And I could go on for ages.

So yes, I would encourage people to play that “Go Greek for a Week” kind of reality show. But I would change the game and make the “Greek” the average private sector employee which is the majority of Greeks – not the wise-ass public sector guy.

Someone who is now for example 40 years old and

When he was 18 decided to study abroad as the local university system is in shambles – because the State has made universities into PARTY meetings. He spent 4 years abroad, paying a big sum of money (which his family managed to save for 20 years) to get a proper education.

Someone who came back to fulfill his mandatory military service losing 18 useless months patrolling a forest somewhere in Greece while neglecting his educational/professional skills.

A person that got a first job in the private sector as he was ambitious and energetic (instead for pleading for a public sector job to a congressman). A person that after 10 years of hard work of at least 12-14 hours a day in a highly competitive field managed through his hard work to be making a decent salary. A salary that stands 50% lower than the equivalent French or German counterpart – but has to pay exactly the same amount of money with the French or German to buy a car or a mobile phone or any good for that matter. Not to mention a house – real estate prices jumped 100% in less than 10 years

Someone that for the past 10 years has been paying 35-40% tax on the income and extra taxes on real estate and for return was getting zero services.

Someone who has been paying 17% of social security tax on gross income, KNOWING that he has ZERO chances of a pension as pension funds are bust.

Someone who cannot use public services, ministries, transport, airports, anything public 100 days per year because of striking “public servants”. Where every year the tax cost of his vehicle rises at a CAGR of 25% - insurance cost the same. Where he cannot any more drive safely in many parts of town as illegal immigrants from the middle east are sending crime rates through the roof.

Someone that every time he walks into a super market, he wonders if there is going to be a hold up by the ruthless Eastern Europe gangs that exercise this hobby.

Someone that when the crisis showed up, the State decided to tax him even more, RETROSPECTIVELY on his 2009 (pro crisis) income and introduce new taxes just for him. To save the skin of the public servants

As this someone keeps working to effectively pay the taxes and cope with the expenses of his family, churning away his hard earned life savings to get through the crisis, facing the risk of getting fired and join the other 1,000,000 private sector employees who are now unemployed.

As this guy travels abroad and tries to do business - but doors keep closing from foreign associates who dealt with him FLAWLESSLY for 10 years because “he is operating in Greece and risk is too high now”

As this guy sleeps every night, securing the windows and double checking locks to avoid getting broken into – since crime rates are through the roof.

As this guy sits on his couch to watch a foreign TV channel to avoid the ranting of  ridiculous Greek  politicians in local TV networks - in an effort  to empty his mind and forget his every-day maddening chores - he finds out that he is a Modern time Zorba, drinking martini’s on the beach and spending senselessly the money of his creditors...

Imagine the mood of this guy…