With Greece teetering on default, when will the world economy feel it’s effects? A majority in the Greek Parliament voted for austerity measures last week (155 members of the 300). Meant to keep Greece from sliding farther into debt and to isolate the Euro Zone from the country’s economic fluctuations. This decision was unpopular among Greek youths sparking daily protests.
The EU crisis has already begun affecting the United States economy. If the debt problems spill over, Europeans will buy less overall — including less American-made items. U.S. banks would take a significant hit and it would result in thousands of layoffs in the financial industry, leading to layoffs worldwide.
“Companies are not even willing to hire international students due to added costs,” said Ajit Singh, an international student at Baruch College. Student’s will feel the pain of Europe’s fiscal uncertainty with cuts in education, rising tuition, huge deficits, and fewer job opportunities. The average unemployment rate for graduates up until 2008 was 2%. It now ranges between 4% and 5%. With an average debt of $24,000 a student has radiates into a very uncertain job market.
SOURCE: The Ticker