Generate text that refutes this claim: The current austerity measures are not working  The Austerity measures put in place by the ECB, IMF and European Commission have led to nothing but misery for the Greek people. They have failed to cut down the total debt % GDP ratio and have also failed to increase the competitiveness of the Greek economy. This is because raising taxes and slashing the minimum wage has sent the economy deeper and deeper into recession. Unemployment is at a record high of 21% and there is a severe shortage of credit leading to severe difficulties in companies financing their day to day projects. What’s more, the country itself is plunged into depression. Escalated (inevitably) by the local and international media, the climate is one of despair and investment is at the bottom of anyone’s priorities. This further perpetuates the cycles of recession and prevents any of the austerity measures having their desired effect. Additionally, the drastic fall in GDP every quarter means that cuts in government spending are also not having their desired effect on reducing the budget deficit % GDP ratio. Worst of all, the economic hardships have drawn many people to despair and the suicide rates in Greece have dramatically risen over the last year and access to healthcare has drastically declined. [1] In this manner, the government is failing in fulfilling its most basic duties of safeguarding the lives and wellbeing of its citizens. If the current measures are not working then a new approach is needed. A default would alleviate much of the suffering caused by austerity.  [1] Armitsead, Louise: “Why Greece should default and exit the euro” 23 February 2012, The Telegraph,
conomic policy eurozone crisis finance international europe politics government
The proposition’s claims that the austerity measures have totally failed are unfounded. Although it is true that the total debt % GDP ratio has not gone down, this is not as serious as the prop make out. The budget deficit is the main problem that needs to come down because a consistently high budget deficit is what will make the situation spiral out of control and make Greece default on its debts. There is nothing per se problematic with having a large total debt (look at the USA’s total debt of $10 trillion, or Japan’s much higher debt to GDP ratio of 230% which unlike in Greece has not resulted in high interest rates,[1] for example). The fact that Greece’s budget deficit has gone down from 16% to 9% is an encouraging sign of improvement.  In addition, the proposition are not contentious in their claims about the negative effects of austerity. What they have failed to demonstrate, however, is why defaulting is the only solution to the suffering Greek people and the inability of the austerity measures to have their desired effect. The austerity measures have failed thus far because they have been targeted at the wrong areas of the economy and because the Greek Government has not been implementing them properly. Hitting the private sector with high taxation has done nothing to fix the faulty public sector which is the real cause of the debt crisis. The Greek Government remains hugely reluctant to carry out redundancies and wage cuts within the public sectors, as well as privitisations. [2] Greece, therefore, must be made to see that they must fulfill their promises and actually tackle the public sector, while alleviating taxation from the private sector.  [1] Free Exchange, ‘Defying gravity’, 14 August 2012, The Economist,   [2] Babbington, Deepa: “Greek PM sings in tune, now must hit the hard notes”, Septembe 5 2012, e-kathimerini,